Parliament paves way for land expropriation

In a moment dreaded by investors, parts of civil society and the agricultural sector, reality arrived with a shock yesterday when parliament passed a motion to review the constitution to allow for expropriation of land without compensation.

Only 83 members of parliament voted against the motion, which was supported by 241.

The motion, which was initiated by the Economic Freedom Fighters, received support from the ANC, the Inkatha Freedom Party and its breakaway party the National Freedom Party, and other opposition parties – but was vehemently opposed by the DA, Freedom Front-Plus and the Congress of the People.

The motion, which was amended in parts by the ANC, will see a lengthy review process of section 25 of the constitution.

The House directed the constitutional review committee to provide a report on this by August 30.

The debate was heated and emotional in parts as members debated the merits of legislation and policy on land reform.

The DA accused the ANC of using this motion as a means to distract the country from its failures in implementing land reform policies.

DA MP Thandeka Mbabama seemed to have ripped a page straight out of the Institute of Race Relations’ (IRR) statement yesterday warning that the motion would infringe on property rights and undermine the capital base of agriculture.

Like the IRR, Mbabama was of the view that once land is expropriated without compensation, it could no longer serve as collateral, pointing out that most agricultural land was bonded to financial institutions for about R160 billion.

She also referenced the commission into the impact of transformative legislation – chaired by former president Kgalema Motlanthe – which suggested there was little evidence that the obligation to pay compensation has been a significant obstacle and that it was factors such as corruption and lack of political will that hindered land reform.

Outgoing Minister of Rural Development and Land Reform Gugile Nkwinti said government’s land audit found that black South Africans owned just 4% of agricultural land, in comparison to the 15% owned by coloured people, 5% by Indian people and 72% by white people.

Agri-SA’s research, as the IRR pointed out, found that 46% of agricultural potential – land with fertile soil and good water – was in the hands of government and historically disadvantaged individuals.

The essence of the EFF’s motion was that government should be the custodians of land, and leader Julius Malema said yesterday this would not mean that people would lose their houses, but rather that people would essentially lease property from government.

As the ANC pointed out, the motion was in line with its resolution at its 54th national conference and indicated the party would begin the process of amending the constitution to expropriate land without compensation. This resolution came with the disclaimer that this would be done in a way that would not harm food security or the economy.

“Further to this … Comrade Cyril Ramaphosa, in his State of the Nation address, made a commitment that government would continue the land reform programme that entails expropriation of land without compensation, making use of all mechanisms at the disposal of the state,” the party’s parliamentary caucus said yesterday.

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