WeeklySA_AdminLONG-TERM: Expropriation without compensation can work in the best interests of owners and country
By Sandile Swana
In South Africa, there are many abandoned properties, including multi-storey buildings, farms, mines and so on. Public Works Minister Dean McPherson says that no property will be expropriated without compensation in South Africa on his watch, but wisdom points in the opposite direction.
Since 1993, we know that many buildings and lands were the subject of building hijacking or land invasion as the apartheid government was moribund, not knowing what its exact authority was, while the United Democratic Front (UDF) and other political actors actively encouraged land invasion, squatting, and the establishment of unplanned and unauthorised townships.
In 1990, the UDF announced its intention of embarking on a campaign to occupy vacant land in response to the state’s attempts to demolish informal settlements.
The government resorted to holding a meeting with the UDF, giving the assurance that it would not demolish any shacks without consulting the affected communities beforehand (O’Regan, 1992).
Mcpherson admits there is a problem: “On Wednesday, August 28, the Minister of Public Works and Infrastructure, Dean MacPherson, revealed that there are 338 hijacked government buildings across the country”. He disclosed the department owns about 88 000 government buildings, many of which have been hijacked.
Many private property owners including farmers, commercial, industrial and miners have their properties under illegal occupation or themselves no longer have the capacity to keep up with the security, litigation, rates, taxes and utilities.
They have accumulated debts that could bankrupt them. Many private property owners need a “Big Brother” to take that distressed or abandoned property off their hands, process the debts, illegal occupiers and all other threats and redevelop that property.
Some of these properties are held by unviable estates with no competent heirs. That creates enough room for criminals and financial delinquency relative to rates, taxes and utilities.
I am certain Sun International and other major investors in their position would welcome expropriation without compensation, look at the picture, a reality attested to by experts, including commentators in the Daily Investor.
“The Johannesburg Sun Hotel, once the largest five-star hotel in Africa, was abandoned less than two decades after opening its doors and has remained empty since.
“When it opened its doors in 1986, the Johannesburg Sun and Towers on the corner of Jeppe and Small streets was said to be a ‘taste of life in the 21st century’, with an artificial urban lake and personal computers in every room.
“However, as the surrounding CBD decayed and businesses moved their offices to Sandton and Rosebank, the hotel struggled to fill its rooms and was sold twice before its doors were shut for good.”
Forget the fact that when it was built it was more valuable than Sun City, but all that value has disappeared, and the value is replaced by liabilities and uncontrollable risks.
There are many properties and owners in this unenviable position, value is sometimes lost, and the state must expropriate when matters have clearly gone beyond the abilities of the private sector. We do not deny that there was once value even at the Johannesburg Sun, argued Daily Investor.
Johannesburg Sun was the most valuable property development undertaken by Southern Sun – even bigger than Sun City at the planning stage and more valuable on paper.
Some owners are caught up in valuations that were done during the boom years, neglecting that serious risk, liability and cost adjustments have to be made in order to create new value creating models for the benefit of the nation as a whole.
There are areas where property values have remained stagnant for 15 years or more, and any compensation must tie up with realistic and current valuations, and not fantastic notions of making a killing.
Businesstech states the following: “Johannesburg’s residential property market has faced a significant 14-year stagnation, with prices remaining at 2010 levels…We are selling properties for the lowest prices we have ever sold them, and it is across the board, from R600 000 to R15-million.”
It cannot be that the land redistribution and land reform programme is seen as a basis for boosting market prices.
Controversially, in places like the Western Cape, a careful balance between national interest and the property price inflation caused by foreign property speculators and entities that are not vetted must be struck. The London property market has suffered because all kinds of oligarchs of questionable pedigree have pushed out the indigenous peoples and the common people generally through overpricing. This behaviour cannot be acceptable especially when the elites keep the GDP growth rate below the necessary and beneficial 5.4% stipulated in the NDP or the even better 6% stipulated by the African Union for all countries.
There are some economists who believe that the Western Cape, perhaps even South Africa, must encourage high quality, long-term investors, according to Businesstech report.
Economist Dawie Roodt states that the growing trend of foreign retirees choosing South Africa is a promising development for the country’s economy.
He said these retirees essentially serve as long-term visitors, contributing to an influx of capital and supporting the rand’s exchange rate.
Additionally, Roodt underscored the importance of South Africa encouraging more of these types of visas. Roodt added that South Africa should encourage more of these types of visas.
The South African state – led by Dean McPherson, Velenkosini Hlabisa and Andile Nyhontso – need to set up a credible team to identify properties that have become unviable, or are seriously at risk of becoming abandoned properties and expropriate those at nil value or at a risk adjusted price for the sake of maintaining good order in society, for addressing national interest and reducing land hunger.
We need competent public servants to effect proper and value adding land redistribution.
* Swana is an independent political and governance analyst, principal consultant at the Centre for Strategic Leadership
Comment
NIGHTCLUB OF TERROR
The reprehensible acts of violence including compelled rape and torture allegedly perpetrated by bouncers at the ZanZou nightclub in Pretoria, should be condemned in the strongest possible terms because these are actions of people with a blatant disregard for human rights and dignity. This abhorrent behaviour has rightfully sparked national outrage because South Africa prides itself as a country with a Constitution which upholds the values of human dignity, equality and above all, the rule of law.
The disturbing acts of sexual abuse, assault and torture of a group of patrons were recently depicted on videos that circulated around the country.
The exposure of these horrific videos has led to the temporary closure of the nightclub following pressure from various authorities and civil society groups. The Gauteng Liquor Board has also joined the fray by suspending the company’s liquor licence. The South African Human Rights Commission has also announced that they were investigating the alleged criminal offences perpetrated at the nightclub.
The police have confirmed that they were investigating and had already received complaints from three of the victims who laid charges at the Brooklyn police station about their ordeal itwo years ago. The police have launched a search for eight suspects believed to be foreign nationals. ZanZou management has reportedly distanced itself from the alleged crimes and instead announced that they had dismissed the culprits after they became aware of the incident. The motive for the commission of such heinous crimes is still a mystery because patrons are expected to be treated with respect as these are clients who financially supports the business. No individuals have the right to treat them like that – for whatever reason. The Department of Justice and Constitutional Development has strongly condemned the shocking and disturbing acts of violence, torture and dehumanization. Businesses operating in the country, the department added, are required to adhere to the constitutional framework which included the obligation to respect and promote human rights. Any establishment found to be complicit in or tolerating such heinous acts must face serious consequences. Indeed.
Although investigations are still ongoing, we believe that the dreadful acts perpetrated by these bouncers on defenceless patrons could not have taken place under the cover of darkness. They happened when at least there was a manager around who was in charge of operations during that shift. These horrific acts happened in public. Hopefully, the suspects would be arrested and the truth would be told.
What happened to the victims at the ZanZou nightclub is a gross violation of their fundamental human rights as enshrined in South Africa’s Constitution. For whatever reason, these bouncers had no right to take the law into their hands and commit such reprehensible acts. The authorities should be commended for closing the nightclub to allow for a full and thorough investigation to be completed. We also call on the police to act swiftly in tracing and arresting the suspects.
To quote our late President, Nelson Mandela, every human being has a right to live freely. To deny people their human dignity is to challenge their very humanity.
Heads will have to roll at the ZanZou nightcub.
