IRR warns: Over 1,100 state entities could seize property for free

Key topics:Driefontein case raises fears over zero-rand expropriation.Expropriation Act 2024 allows broad government powers.Over 1,000 entities could expropriate without compensation..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up for the BizNews channel here..By Makone Maja*.As the widely publicised Driefontein case heads to court-directed mediation, the Institute of Race Relations (IRR) is following up on its earlier inquiry to the Ministry of Public Works and Infrastructure on the number of expropriating authorities empowered under the Expropriation Act. The Driefontein case, in which the Ekurhuleni Municipality expropriated the property of Business Venture Inv No 900 (Pty) Ltd and offered R0.00, or nil, compensation as just and equitable, has renewed concerns about the expropriating powers of the state. Although the case may not be decided under the Expropriation Act of 2024, it does raise pertinent questions about the relatively tame powers government could exercise under the Expropriation Act of 1975 – where it could still arrive at zero-rand compensation – against the explicit and untrammelled scope for expropriating without paying compensation under the latest Act..Read more:.Driefontein EWC dispute signals danger for property rights in SA: Corrigan.Says Makone Maja, the IRR's Strategic Engagements Manager: “The Expropriation Act of 2024 effectively allows the government to give almost any reason for expropriating with nil compensation, owing to the open-ended list of grounds it sets out for such expropriation.”Maja continues: “The powers alone are deeply concerning. However, the risk is compounded by the possibility that hundreds of government entities may have access to them. As custodian of the Expropriation Act, the Minister of Public Works and Infrastructure, Mr Dean Macpherson, can provide clarity on this by confirming exactly how many government organisations are empowered by the Act of 2024 to expropriate without paying compensation. “The supposedly reassuring argument by some companies and analysts that the list of possible conditions for expropriation without compensation in the 2024 law removes policy uncertainty is undermined by the possibility that expropriating powers may be conferred on over 1,000 government entities. .Read more:.FMF: Repeal Expropriation Act, pursue real land reform.“As the government is not known for prudence and rigour, the fact of these powers being available to as many as 1,105 state entities will sharpen rather than relieve uncertainty about the security of the property rights of all South Africans. The potential for abuse is endless,” Maja concludes..*Makone Maja, IRR Strategic Engagements Manager

IRR warns: Over 1,100 state entities could seize property for free

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