Department of Land Reform lost the public a ‘morally unconscionable' R85,000 a day
Last week, a judgment by the Supreme Court of Appeal castigated the Department of Land Reform for wasting public money after it failed to make payment on land bought in Mpumalanga and got involved in what judges called "ill-advised and morally unconscionable litigation" to appeal a High Court decision that it must pay punitive interest.
The Department bought 15 properties to the value of R200 million from land owners in Mpumalanga in 2009. The land was bought for land reform purposes.
Payment for the land was only made in July 2010 and the department refused to pay interest on the outstanding sum over that period.
The North Gauteng High Court granted a claim for punitive interest, which was then opposed by the Department. Five judges of the Supreme Court of Appeal found on Friday that the decision to appeal was ill-advised. The judgment states:
‘It remains to observe that the conduct of officials in the employ of respondents evokes strong feelings of disquiet ... Because of their conduct the public purse is much the poorer ... for as long as the purchase price remained unpaid, interest accrued at R84,931 per day. To that must be added the costs of what can only be described as ill-advised and morally unconscionable litigation ...'