Public Submission: Draft Expropriation Bill No 42127

Publication Date:
02/19/2019 14:07:00
land reform and possible amendments to Section 25 of the constitution

Dear Mr Vukela 

Public Submission: Draft Expropriation Bill, 2019, No 42127, of 21 December 
2018 

The Banking Association South Africa (“The Banking Association”) would like to thank The Department of Public Works and the National Assembly Committee on Public Works for the opportunity to comment on the above-mentioned Bill. 

Who we are 
The Banking Association South Africa (The Banking Association) is an industry body representing all banks registered and operating in South Africa. Currently, The Banking Association has 33-member banks which include both South African and International banks. All licenced banks are members of The Banking Association. Our vision and role, together with our areas of focus, including a list of our members may be found on our  website, www.banking.org.za 

Context  
The Banking Association supports Government’s initiative to address past imbalances through processes such as land reform, as envisaged and provided for by the Expropriation Bill. 
The banking sector is a critical stakeholder because of the substantial sums of credit extended by banks in respect of “property”. Banks have approximately R1.6-trillion in mortgage exposure to immoveable property, including agricultural, commercial, industrial and residential mortgages. 

Comments  
We suggest four critical themes needed for the Bill: 

  • Alignment to the Constitution of the Republic of South Africa, South African case law and international norms; 
  • Completeness of definitions; 
  • Protection of the rights of owners and holders of registered and unregistered rights (notification, processes etc.to support this); 
  • The “just and equitable” principle as contained within Section 25 of the Constitution of the Republic of South Africa, 1996 to provide underpinning support for owners and holders of rights. 

Our comments will thus be made considering these four themes.   

Read full BASA submission on the Expropriation Bill here.

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