Expropriation Act: How many expropriating authorities are empowered by the Act?

The Institute of Race Relations (IRR) will this week write to the Minister of Public Works and Infrastructure, Dean Macpherson, requesting clarity on a crucial matter related to the Expropriation Act, for which the Minister is responsible.

The Act grants sweeping powers to expropriating authorities to expropriate any form of property below market value. It offers weak and contradictory measures to property owners to protect their rights through the courts. Yet, just how many authorities in South Africa are granted expropriating powers by the Act is unclear; by IRR calculations, the number could exceed 400.

Says Makone Maja, IRR Strategic Engagements Manager: “The Expropriation Act is an unpopular piece of legislation. IRR opinion polling in March and April this year found that 68% of registered voters oppose the Act. It’s easy to understand why. The Act is written so broadly that every form of property in South Africa is now subject to expropriation below market value. From homes to farms to businesses to savings to pensions, all forms of property are, in terms of the Act, vulnerable to expropriation. And yet there seems to be no clarity from the government on the exact number of entities the law empowers to confiscate property on astonishingly flimsy grounds.”

As illustrated in the IRR’s flagship Blueprint for Growth series, property rights are a vital means of economic participation and empowerment only if they are secure. Weaken the certainty with which people can own what’s lawfully theirs and the knock-on consequences range from undermining food security to wiping out pensions and savings.

Says Maja: “It is the height of policy recklessness for this door of vast state power to be opened to an unknown number of expropriating authorities. If the number of these authorities is unknown, how can South Africans have any trust that the sweeping expropriating powers granted by the Act won’t be abused?

“We have all heard the horror stories of extortion by state officials – from kickback mafias to corruption. We are a country familiar with the disgusting abuse of state power. The Expropriation Act empowers a vast expropriation network at all levels of the state. The IRR has thus far tallied at least 426 such authorities, yet the number might rise to close to a thousand. This is a terrifying prospect. The Minister has a duty to provide urgent clarity on this matter.”

The Institute of Race Relations Johannesburg