The Circumstances That Allow Expropriation Without Compensation

Public Works and Infrastructure Minister Dean Macpherson has vowed that expropriation without compensation will not happen on his watch - but the newly signed Expropriation Act outlines the circumstances under which nil compensation may occur.

The Act gives Macpherson, as Public Works and Infrastructure minister, powers to expropriate property for a public purpose or in the public interest.

As the Minister of Public Works and Infrastructure, there will be NO expropriation of private property without compensation on my watch. The guarantee of property rights under Section 25 of the Constitution is not up for debate and is non-negotiable, he wrote on X on Friday 24 January.

Despite Macphersons comment, the signed Expropriation Bill states, It may be just and equitable for nil compensation to be paid where land is expropriated in the public interest, having regard to all relevant circumstances.

It lists these circumstances as follows:

• Where the land is not being used and the owner's main purpose is not to develop the land or use it to generate income, but to benefit from appreciation of its market value.
• Where an organ of state holds land that it is not using for its core functions and is not reasonably likely to require the land for its future activities in that regard, and the organ of state acquired the land for no consideration.
• Notwithstanding registration of ownership in terms of the Deeds Registries Act, 1937 Act No. 47 of 1937, where an owner has abandoned the land by failing to exercise control over it despite being reasonably capable of doing so.
• Where the market value of the land is equivalent to, or less than, the present value of direct state investment or subsidy in the acquisition and beneficial capital improvement of the land.
• When a court or arbitrator determines the amount of compensation in terms of section 23 of the Land Reform Labour Tenants Act, 1996 Act No. 3 of 1996, it may be just and equitable for nil compensation to be paid, having regard to all relevant circumstances.
• When the nature or condition of the property poses a health, safety or physical risk to persons or other property.

Speaking to SABC News , Public Works and Infrastructure Deputy Minister Sihle Zikalala said the Act provides for nil compensation.

We stand ready to defend the Expropriation Act and ensure its timely implementation! he also wrote on X.

In an apparent response to Zikalalas comments and media interviews, Macpherson posted on X, In terms of the law, only ministers implement Acts and regulations. Anyone who claims to speak for the department is just giving an opinion.

The Act presents yet another test of the government of national unity GNU, whose parties have differed sharply on key legislation such as the National Health Insurance and the recently promulgated Basic Education Laws Amendment BELA Act.