5 properties that could be expropriated without compensation in the future

5 properties that could be expropriated without compensation in the future

- Thulas Nxesi, Minister of Public Works has published the latest Expropriation Bill for public comment

- The Bill explains how expropriation, mostly with compensation, will work

- The draft law lays out how five kinds of property can be expropriated without compensation

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The Minister of Public Works Thulas Nxesi has published the latest version of the Expropriation Bill for public comment the morning.

Spelling out how expropriation will work, the draft specifies five different kinds of property that could justly be expropriated without compensation.

The draft also clarifies the proposed strategy for how valuation will be done, how disputes will be settled and how funds will be paid.

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The draft reveals that no property may be expropriated autocratically, in other words by random or personal whim.

Here are the five kinds of property the new Bill states could be subject to expropriation without compensation:

Abandoned property

No compensation has been deemed just ‘where the owner of the land has abandoned the land’ but only in certian situations.

State-owned property

The Expropriation Bill says that no compensation can be justified ‘where the land is owned by a state-owned corporation or other state-owned entity’.

Over 700 state entities in the country include many with large land holdings surrounding it’s various facilities.

Land held for speculative purposes

The Bill also deems expropriation without compensation will be appropriate ‘ where the land is held for purely speculative purposes’.

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Property where the state has invested more than its value

No compensation will be considered where the market value of the land is less the the amount of ‘direct state investment or subsidy’ either spent on procurement or on capital improvements.

Farms with labour tenants

The Bill went on to identify property where ‘the land is occupied or used by a labour tenant’ as possible qualifiers for no compensation.

These tenants are denied as individuals who live or have the right to live on a farm.

The Bill made provision for partial expropriation, which could possibly be used to expropriate only portions of farms. Those affected by partial expropriation also have a mechanism which allows them to ask for the entire property to be expropriated instead.

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Source: Briefly.co.za

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