We’ll confiscate the assets of white South Africans – Ace Magashule

Last Saturday the ANC secretary general, Ace Magashule, who has himself been accused of large-scale corruption, stated that the assets of white South Africans will be confiscated without compensation. He sketched a kind of Marxist-Leninist future for the country in which private property, banks and industries will be nationalised and “Africanised”.

“Our people demand service delivery, sustainable jobs, efficient health services, and an accountable government,” he said in a speech loaded with rhetoric while delivering the annual Walter Sisulu memorial lecture in Bloemfontein in the Free State.

Their hope still lay with the ANC, which dare not betray them. The people were refusing to be subtenants and squatters in the land of their birth. This was the current challenge – to better the quality of life of the people, and this could only be done when the ANC remained an unapologetic fighting force, he said.

“We must increase the capacity of the ANC and alliance partners to wage an unrelenting struggle against the theft of our wealth and our dignity.”

Economic self-determination of the African people was the next vital frontier of struggle. “We can never waver or falter in our determination to achieve that. Africans must build our own industries, and manufacture the very goods that we need. In fact, to put it bluntly, we must consume what we produce.

“We must go back to basics and rebuild our own economy, starting with the township economy. We too have come of age, and are willing to take charge of our affairs. [Former president] Nelson Mandela once warned us that: ‘Resentment is like drinking poison and then hoping it will kill your enemies’.

“So it must not be argued that we are motivated by hate. We are motivated by the quest for justice. It is an irrefutable truth that for long as the poor are poor, the rich cannot sleep at night. As we remember comrade Walter Sisilu we dare not betray our true struggle for cheap media headlines, nor for the crumbs that come from the well laden table of white monopoly capital.

“We dare not betray our people with a view to gain favours from those who owe us our very wealth. Comrades, we must be resolute and steadfast. We are heading for troubled times, and we are surely coming for what is ours,” Magashule said.

The ANC was unwavering in its determination to implement the resolutions of the 54th national conference.

“Our determination is to foster a new momentum for the fundamental radical economic transformation (RET) of our socio-economic landscape. Our mandate is to expropriate land without compensation… to nationalise the Reserve Bank… to transform the financial institutions and banks in order to serve the needs of our people… to stop privatisation of state-own[ed] enterprises… the transfer of the political and socio-economic power into the hands of the overwhelming majority of our people, Africans in particular, and the black people in general,” Magashule said.

Zimbabwe arrives in SA: ANC’s plan for expropriation

Anthea Jeffrey
Anthea Jeffrey

Dr Anthea Jeffery, head of Special Research at the Institute of Race Relations, says the Investment Bill opens the door to expropriation without compensation and is a new Expropriation Bill by another name.

Media coverage of the Promotion and Protection of Investment Bill of 2013 (the Investment Bill) has focused on its role in replacing South Africa’s bilateral investment treaties with various European states. Representatives of these countries have broken their usual diplomatic silence to warn against the reduced protection it gives investors from their states. However, the true significance of the Bill goes very much beyond this.

The Investment Bill is, in fact, a new expropriation measure that will apply to all property owners in South Africa, both local and foreign. It is also likely to result in many people receiving zero compensation on the loss of their property, provided the State takes this, not as owner, but rather as ‘custodian’ for the disadvantaged. In combination with the Restitution of Land Rights Amendment Bill of 2013, it could see property of many kinds taken by the State as ‘custodian’ for land claim- ants and without any compensation to its former owners. Yet most commentary on the Investment Bill has overlooked this risk, helping to lull all property owners into a false sense of security.

A misleadingly named Promotion and Protection of Investment Bill of 2013 was gazetted by the Department of Trade and Industry (DTI) in November last year. The three months allowed for public comment expired at the end of January 2014. Since then, media coverage has been sanguine or absent, helping to obscure the threat posed by the Investment Bill to the property rights of every person, whether local or foreign.

Under the Investment Bill, the rights of domestic property owners will be much reduced. The current Expropriation Act of 1975 gives them the right to full compensation on expropriation, which must include not only the market value of their properties but also compensatory damages for consequential loss. The Act also guarantees them immediate payment of 80% of the compensation due, with interest on the outstanding balance.

Under the Investment Bill, by contrast, expropriated owners will receive less than market value and will have no right to damages for consequential loss. They will also have to wait for the State to make payment in what it regards as ‘a timely manner’.

However, the real danger in the Investment Bill is not that domestic property owners will be confined to ‘just and equitable’ compensation falling somewhat short of market value – but that they will receive no compensation at all.

This danger stems from a key clause in the Investment Bill stating that various actions ‘do not amount to acts of expropriation’. According to the Bill, there will thus be no expropriation where the Government’s actions result ‘in the deprivation of property’ but ‘the State does not acquire ownership’ and ‘there is no permanent destruction of the economic value of the investment’.

 

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