Land expropriation without compensation - 16 May 2018 - ENSafrica

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Land expropriation without compensation - 16 May 2018 - ENSafrica
land expropriation without
compensation

16 May 2018
Land expropriation without compensation - 16 May 2018 - ENSafrica
agenda

            section 25 of the constitution
    01      Pippa Reyburn
            corporate commercial | director

     02   land restitution
          Andrew Bembridge
          property and real estate | director

               impact on mining
    03         Ntsiki Adonisi-Kgame
               natural resources and
               environment | director
Land expropriation without compensation - 16 May 2018 - ENSafrica
section 25 of the constitution

          Pippa Reyburn
          corporate commercial | director

          Pippa is a director in ENSafrica’s
          corporate commercial department.
          She specializes in public procurement,
          public sector financial management,
          infrastructure projects (including
          public private partnerships), as well as
          structures of government, public
          sector corporate governance and
          transactions, and constitutional
          administrative law. Some of Pippa’s
          other areas of experience include
          broad-based black economic
          empowerment, municipal law and
          medical schemes.
Land expropriation without compensation - 16 May 2018 - ENSafrica
section 25 of the constitution
property
                                 section 25

 section 25                      transformational mandate

property is not limited to
land
                                              section 25

  section 25                              protection of existing
                                          property rights

  deprivation of property
Land expropriation without compensation - 16 May 2018 - ENSafrica
land reform under section 25

    land redistribution

    security of tenure

    land restitution
Land expropriation without compensation - 16 May 2018 - ENSafrica
expropriation of property under section 25

 what is expropriation?
 how may property be expropriated?
 how may property not be expropriated?
Land expropriation without compensation - 16 May 2018 - ENSafrica
compensation for expropriation

                                        just

        compensation

                                       equitable

    having regard to all relevant circumstances
compensation proviso
does section 25 already permit expropriation
without compensation?

 section 25(8)
 • expropriation which is inconsistent with section 25 must
   comply with the general limitations clause

 section 36(1)
 • general limitations clause
the parliamentary review process

        motion proposed by the EFF, amended by the ANC and adopted by the
        National Assembly (NA) on 27 February 2018 (extract below):

 “…recognizes that the current policy instruments, including the willing buyer willing seller
 policy, and other provisions of section 25 of the Constitution may be hindering effective land
 reform;
 notes that in his State of the Nation Address, President Cyril Ramaphosa, in recognizing the
 original sin of land dispossession, 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, implemented in a manner that increases
 agricultural production, improves food security and ensures that the land is returned to
 those from whom it was taken under colonialism and apartheid and undertake a process of
 consultation to determine the modalities of the governing party resolution..."
parliamentary review process

        National Assembly + National Council of Provinces

        Constitutional Review Committee

        Public participation process – written submissions by 15 June
        2018

         Report to the National Assembly by no later than 30 August
         2018
important considerations

special majority is required for the amendment of
section 25
the Expropriation Bill has been “parked”
section 25 is not the cause of failures in land reform
any constitutional amendment permitting
expropriation without compensation is likely to be
qualified / limited
thank you
restitution of land

        Andrew Bembridge
        property and real estate | director

        Andrew is a director and head of ENSafrica’s real estate and property
        department.
        He has acted for a number of notable mining companies, banks and
        property development companies.
        Andrew has been involved in many major property transactions
        throughout Africa. His experience encompasses developments such as
        township proclamations, land use applications, water projects and
        environmental and heritage applications. Andrew’s experience further
        extends to extensive commercial property transactions, involving
        immovable and movable property, the drafting of intricate agreements
        and the implementation of the transactions arising out of those
        agreements.
        He also has extensive experience in the land rights and restitution laws of
        South Africa, assisting both land owners and communities and has served
        as a member of the Johannesburg Attorneys Association Property Law
        Committee.
restitution of land rights act 22 of 1994

  24 years ago

  The main driver of redistribution of land
restitution procedure

        establishment of commission to
                receive claims
entitlement to restitution

                                   dispossessed of
  entitlement to restitution if     land after 1913 by
                                    racially
                                    discriminatory
                                    laws
                                   direct descendants
                                    of such a person
                                   lodged a claim by
                                    December 1998
                                   if claim lodged and
                                    not frivolous or
                                    vexatious, it is
                                    published in the
                                    Gazette
restitution procedure

section1 • commission to investigate
    2

section
          • commission may mediate
  13

section
          • commission may refer claims to court
  14

section
          • minister may enter into an agreement with interested parties
  42D
extension for filing land claims

    July 2014                             July 2016                          June 2019

redistribution of Land Rights
Amendment Act                 Constitutional Court rules Amendment Act
                              unconstitutional
                                                                         time for lodging claims extended

                                         All new claims on hold
why has restitution not succeeded?
      lack of proof of evidence
      hearsay of past generations
      lack of budget
      transfer of land to communities – CPA/Trust
      no individual title when transfer to a
      community
      Sale of restitution land for immediate cash
      benefit
      Failure to restore agricultural enterprises to
      communities
process not complete
                       7 000
                       claims lodged but not finalised

                        19 000
                        new claims not finalised
                        extension to 2019 awaited
no alternative legislation

               legislation for redistribution of land within the
               constitutional framework is required
expropriation

  expropriation not used to achieve
  restitution
  willing seller avoids difficulty of proof
expropriation without compensation

  expropriation without compensation
  does not mean expropriation without
  reason – must still be in the
  Constitutional Framework
thank you
impact on mining

            Ntsiki Adonisi-Kgame
            natural resources and environment | director

            Ntsiki is a director in ENSafrica’s natural resources and
            environment department. She specialises in all aspects of
            mining law. She acts for a wide range of mining companies
            in all mineral commodity sectors, including the base and
            precious metals, coal, rare earths, sand and diamonds
            sectors.

            Ntsiki’s expertise include advising on mining aspects of
            equity and asset acquisitions, disposals and corporate
            restructuring, conducting mining due diligences, execution
            and registration of mining titles and black economic
            empowerment transactions. Her experience further
            includes all aspects of regulatory work in the mining
            industry, for listed and unlisted senior, mid-tier and junior
            companies.
legislation

the Mineral and Petroleum Resources Development
Act (“MPRDA”)
the common law
the state as custodian
Iegal nature of mining titles

limited real rights
by virtue of being a limited real right, the relevant
landowner is deemed to be aware of the existence of the
mining titles on the relevant property through the
doctrine of constructive notice
statutory right to access the land

                                statutory right to access the land
                                                                     mining title holders afforded a statutory right

                                                                     right to bring any plant, machinery, or equipment and build, construct or lay down any
   section 5 (3) of the MPRDA

                                                                     surface

                                                                     underground or under sea infrastructure

                                                                     mine for minerals

                                                                     use water

                                                                     remove and dispose of the minerals found

                                                                     carry out activities incidental to mining provided they do not contravene the MPRDA
expropriation in the MPRDA
section 54 allows the Regional Manager to make recommendations
to the Minister to expropriate land in these instances:

                                          landowner makes
    landowner refuses to allow entry   unreasonable demands     Landowner cannot be
                to land
                                         in return for access   found
ministerial power to expropriate for purpose of mining

      section 55 of the MPRDA read with section 25 (2) and (3) of the Constitution

      section 55 (2) of the MPRDA and section 6,7 and 9 (1) of the Expropriation Act
impact on mining communities

                 Resistance to
                expropriation
                   without
                compensation
impact on private land owners
in terms of section 5A (c) of the MPRDA a mining title
holder is not entitled to mine on the land without first
providing the landowner or lawful occupier of the land
with 21 days’ notice before the commencement of
mining operations
mining title holders do not need to own the land on
which mining operations are to be conducted
no consent required from landowner
impact on mining companies

 no adverse effects on the holders of mining titles
 because of statutory rights

 beneficial to the mining industry

 will impact existing access agreements
thank you
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