Africa-Press – South-Africa. Remgro CEO Jannie Durand warned that the government taking property without market-related compensation will have severely negative consequences for South Africa.
Durand shared his views during a Biznews interview about the recent case of expropriation without compensation by the City of Ekurhuleni.
The City of Ekurhuleni in the Gauteng province has expropriated a 34-hectare property, known as portion 406 of the Farm Driefontein, without compensation.
This case tests the limits of Section 25 of the Constitution as the city government refuses to pay any compensation for the land.
The city believes its offer of nil compensation is just and equitable and was arrived at after having shown that the equitable balance favours the interest of the public.
Based on a “substantive consideration of social justice and the lived experiences of those who are landless and subjected to inhuman living conditions in informal settlements,” it concluded that market value has no bearing on the matter.
It even alleged that the owner suffered “no financial loss as a result of the expropriation” and that, because the land was supposedly held for speculative purposes, it did not qualify for compensation.
Since losing possession of its property in 2019, the former owner, Business Venture Investments 900, had gone to extraordinary lengths to seek an amicable resolution to overturn the offer of nil compensation.
At the time of expropriation, the owner was applying for development rights, and the property was valued at a minimum of R30 million.
However, this is merely the lower end of the scale. Independent valuations since then have ranged as high as R64 million.
With all other avenues exhausted and millions already spent in legal fees, lost development opportunity, and management time, it is now preparing for trial.
Six years after the initial notice of expropriation in February 2019, the matter is now scheduled for court-directed mediation in October and an 18-day trial in February 2026.
Many economists have warned that if market-related compensation is not restored, the case will herald an economic, political, and social crisis in South Africa.
Remgro CEO Jannie Durand warns against expropriation without compensation
Dr Corné Mulder, President of the Vryheidsfront Plus (VF+)
Remgro CEO Jannie Durand said there will be severe negative consequences if Business Venture Investments does not win its legal battle against the City of Ekurhuleni.
Durand highlighted that Business Venture Investments had commercial development plans for the Farm Driefontein.
“It was not a useless piece of land just lying there. It was productive land which the City of Ekurhuleni expropriated without compensation,” he said.
He said that the consequences of actions like these, if allowed, would be very negative for South Africa and its economy.
Many other high-profile executives and politicians shared Durand’s concerns, saying that protecting property rights is crucial to a stable economy.
Freedom Front Plus (VF Plus) leader, Corné Mulder, said it was crucial to join hands in preventing the Ekurhuleni Metro’s bid to expropriate land without compensation.
The VF Plus will engage with organisations, such as the Southern African Agri Initiative (SAAI), the Transvaal Agricultural Union (TLU SA), and Sakeliga, to take concerted action.
“The case raises serious questions about the ANC and President Cyril Ramaphosa’s truthfulness about the reality of expropriation without compensation,” Mulder said.
The Freedom Front Plus believes it is quite realistic to expect a wave of expropriations without compensation if the Ekurhuleni Metro is ultimately successful in this case.
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