1. Presentation to the Portfolio Committee on Public Works 26 August 2015 1

2. Clause 2(2) of the Expropriation Bill [B4-2015] states – “…a power to expropriate property may not be exercised unless the expropriating authority has without success attempted to reach an agreement with the owner or holder of an unregistered right in property for the acquisition thereof on reasonable terms.’ The expropriation process includes –  Investigation and gathering of information for purposes of expropriation (including consultation with the relevant municipality, if the property is land)  Notice of intention to expropriate  Notice of expropriation  Verification of claims for compensation made after date of expropriation  Process to negotiate compensation 2

3. 3 1.Investigation and valuation of property to ascertain –  Suitability of identified property for intended purpose; and  Registered and unregistered rights in such property. If property is land, consult with –  Rural Development & Land Reform (DRDLR);  Mineral Resources (DMR);  Water & Sanitation (DWS);  Any other relevant organ of state; and  Municipality where land is situated [Clauses 5 & 6]. Expropriation Process 2. If an expropriating authority intends to expropriate a property, a Notice of Intention to Expropriate must be –  published to inform the public;  served on all known affected persons, inviting objections and submissions;  If property is land, delivered to DRDLR; DMR; DWS and the Municipality. Affected persons must deliver to the expropriating authority objections or submissions within 30 working days of the service of the notice [Clause 7].

4. 4 3. An owner or holder of an unregistered right responding to a a Notice of Intention to Expropriate must, within 30 working days, deliver to the expropriating authority, a written statement indicating (amongst others):  amount claimed as just and equitable compensation should he/she be expropriated and full particulars as to how that amount is made up; and  If the property is land, full particulars of all improvements thereon which in his/her opinion, would affect the value of the land. Expropriation Process (Continued) 5.If no agreement on the amount of compensation payable can be reached within 40 working days of the receipt of the written statement (3 above) the Expropriation Authority must decide whether or not to proceed with the expropriation. 4. The Expropriating Authority must, within 20 working days of receiving the statement:  inform the owner or holder of an unregistered right whether the claimed compensation is accepted; and  If not accepted, indicate the amount of compensation offered, furnishing full details and supporting documents of how the amount offered is made up.

5. 5 6. If an expropriating authority, after due consideration of all information and submissions received, decides to proceed with the expropriation, he/she must cause a Notice of Expropriation to be –  Served on the owner and holders of registered rights;  Served on all known holders of unregistered rights; and  Published to inform the public [Clause 8]. If the property is land, a copy of the notice must be delivered to –  DRDLR; DMR; DWS and the Municipality;  Registrar of Deeds and Mineral & Petroleum Titles Registration Office;  Holders of mortgage bonds registered against the property. Expropriation Process (Continued) 7. Such Notice of Expropriation must include –  purpose of the expropriation and reason for the expropriation of that particular property;  date of expropriation and date of possession of the property;  amount offered as compensation (including compensation offered to known holders of unregistered rights in the property);  explanation of what compensation comprises and how it was determined.

6. 6 8. Process in negotiating compensation  A Notice of Expropriation must include details of an offer of just and equitable compensation [Clause 8].  An expropriated owner or holder of an unregistered right must (within 20 working days from service of the notice of expropriation) indicate whether such offer is accepted [Clause 14].  If not accepted, expropriated owners and holders of rights must indicate the compensation claimed and provide full particulars of such claim (including valuations or other professional reports informing such claim).  If the expropriating authority does not accept the claim by an expropriated owner or holder of an unregistered right, he/she must (within 20 working days ) make a revised offer; furnishing full particulars of how such amount is made up [Clause 15].  A claim for compensation and an offer of compensation remain in force until – o expropriating authority makes a revised offer; o a claim or offer has been accepted; or o compensation has been decided or approved by a court. Expropriation Process (Continued)

7. 7 9.Extension of time [Clause 25]  “Wherever a period is mentioned within which something must be done in terms of this Act, the expropriating authority may, on written request and good cause shown by the relevant owner or holder of a right in property or other interested or affected person, as the case may be, from time to time extend that period for a further period or periods as may be reasonable in the circumstances.” Expropriation Process