Minister of Public Works Thulas Nxesi. Picture: SUNDAY WORLD
Minister of Public Works Thulas Nxesi. Picture: SUNDAY WORLD

THE Institute of Race Relations (IRR) has put forward an alternative expropriation bill that it says has many advantages over the Nxesi Bill.

The Nxesi Bill (Expropriation Bill of 2015) was put forward by Public Works Minister Thulas Nxesi. The institute said the Nxesi Bill would make it much harder to build prosperity and overcome past disadvantages by undermining property rights‚ deterring investment and choking off growth and jobs.

The institute had thus developed an alternative expropriation bill with many advantages over Mr Nxesi’s one‚ Institute of Race Relations’ head of policy research, Dr Anthea Jeffery, said.

The Institute of Race Relations’ alternative bill dealt with all the defects in the current Expropriation Act of 1975. Unlike the Nxesi Bill‚ it was also fully in line with the Constitution.

The institute’s bill required that the state obtain a high court order confirming the constitutional validity of a proposed expropriation — and the adequacy of the compensation proposed — before it issued a notice to expropriate any property.

It also detailed the stringent conditions attached to the compensation proposed.

The Institute of Race Relations said: "The Nxesi Bill omits these safeguards against potential abuse. It is also unconstitutional in empowering the state to take ownership and possession upfront — leaving it to the owner to seek redress in the courts thereafter‚ if he can afford this.

"Worst still‚ the Nxesi Bill seeks to oust the jurisdiction of the courts by allowing them to adjudicate solely on the compensation offered — and not on the overall validity of the expropriation."

Dr Jeffery said: "To speed up this process‚ SA needs growth at 6% of GDP (gross domestic product) a year‚ coupled with an upsurge in investment and employment. Instead‚ the Nxesi Bill threatens to reverse these.

"Anyone who doubts the importance of property rights — and the dangers in allowing the state to undermine them — has only to look north to Zimbabwe‚ west to Venezuela‚ and east to North Korea to understand why the Nxesi Bill must be rejected and why the IRR one should be adopted in its stead."

RDM News Wire