Siyavuya Mzantsi
IN WHAT has been hailed a ground-breaking judgment, the South African Land Claims Court has declared that market value of land need not necessarily be the most important factor in expropriation matters as had previously been considered.
Five other factors listed in Section 25 of the constitution have equal weight. This emerged this week when Judge Tembeka Ngcukaitobi ruled for the unemployed Msindo Msiza, 60, who had been embroiled in a decade-long legal battle with the Department of Rural Development and Land Reforms following its failure to compensate him for the value of the land his family owned on a Mpumalanga farm.
Judge Ngcukaitobi ordered that equitable compensation – R1 500 000 – be paid by the department’s minister and director-general for the acquisition of property for Msiza.
The department was ordered to pay the sum to Msiza within 60 days of the judgment. And it was directed to ensure the property was registered in Msiza’s name within 90 days of the judgment.
According to the judgment, the 352.5033ha farm had been acquired by the Dee Cee Trust for R400 000 in 1999. The judge said the actual valuation was not in dispute. It was common cause that if the land was valued for agricultural use – which is what it is being used for – its correct market value was R1.8m.
“I have rejected the suggestion that the actual loss of the property is the developmental potential. The actual loss is the agricultural potential.”
The government indicated it was willing to settle the claim at the market value, provided such value was calculated according to the agricultural use, as opposed to the potential development of the property or township development use.
“Despite the willingness of the state to pay the market value of the property, I am not satisfied that the market value of the land, as agricultural, is just and equitable and reflects an equitable balance between the public interest and the interest of those affected by the expropriation,” said the judge.
“I am happy that this matter has finally come to an end. For years we have been suffering,” said Msiza.