DA to oppose problematic Expropriation Bill
2 February 2016
Today the ANC in the Portfolio Committee of Public Works unsurprisingly resolved to adopt the latest version of the Expropriation Bill which we contend remains at odds with the Constitution. The DA will continue its efforts through further parliamentary mechanisms to ensure that this Bill is not summarily adopted without dealing further with the constitutional obstacles it presents.
The DA continues to oppose the Bill for several reasons, the most fundamental being that the Bill appears to be at odds with the Constitution and the ramifications of its implementation could lead to disinvestment in the country thereby causing further job losses and weakening the already fragile economy.
Additionally the Bill leaves crucial definitions of “property” and “expropriation” wide open to interpretation which has the potential for abuse by giving Carte Blanche to government. The uncertainty created by these problematic definitions has the potential to compromise the security of property rights for South Africans, which could lead to mass job losses as a direct result of a capital flight away from South Africa. This piece of legislation is an ANC ploy to garner votes ahead of the 2016 Local Government Elections despite its effects that will be felt by ordinary, hardworking South Africans for generations to come.
In the arduous deliberations on this Bill, the ANC in committee acceded to many of our recommendations. While the Bill has undergone many amendments, it has missed one of the most important affronts to the Constitution. The state does not have unlimited power and the new Bill provides organs of state, as expropriating authorities, with powers that appear to exceed those contained in the Constitution and Parliament still needs to satisfy itself that all with the Bill is consistent with the Constitution.
Of serious concern is the fact that land may be expropriated at potentially less than the amount owed to a bank or other financial institution through a mortgage bond. This places banks and property owners in a very difficult position where loans cannot be seen as properly secured.
The DA has pushed for careful and thorough consideration of this Bill to align it with our constitutional order. However, the bill still has to be debated in the NCOP where provinces will make their inputs. The adoption of the bill today is not the end of the road.
Issued by Anchen Dreyer, DA Caucus Chairperson, 2 February 2016
