Nationalisation by stealth is coming, courtesy of the shifting EWC Bill

SoldierMan

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Nationalisation by stealth is coming, courtesy of the shifting EWC Bill


An early IRR warning of nationalisation via ‘custodianship’

Seven years ago, back in 2014, the IRR warned that the ANC would seek to nationalise all the country’s land without compensation. It would do so by taking ‘custodianship’ of land and then claiming that no expropriation had occurred (as explained below) and so no compensation need be paid.

The IRR’s warning was dismissed by the government, Agri SA, and the Institute for Poverty, Land, and Agrarian Studies (Plaas), respectively, as unwarranted, ‘unlikely’, and ‘scaremongering’.

Now, however, the ANC and the EFF have agreed that the draft bill to amend Section 25 of the Constitution to allow expropriation without compensation (the EWC Bill) should be revised to include a commitment to ‘state custodianship’ over all land.

ANC and EFF proposals on state custodianship

The ANC’s proposal is contained in a new subsection 25(5), which reads as follows: ‘The state must take reasonable legislative and other measures, within its available resources, to foster conditions which enable state custodianship and for citizens to gain access to land on an equitable basis’.

The EFF’s proposal is much the same, though it wants the italicised words to be deleted. In practice, this change would mean little.

The EFF also seeks a new subsection 25(4A), saying: ‘Land is a natural resource and the common heritage, which belongs to the people as a whole, under the custodianship of the democratic state.’

The ANC’s preferred wording is similar, for it thinks subsection 25(4A) should provide that ‘the land belongs to and is the common heritage of all South Africans’.

Either subsection, if inserted, would point to the supposed rationale for land custodianship. But the key wording is in subsection 25(5) – and would suffice to require new legislation that ‘enables state custodianship’ and gives people ‘access’ to land in the form of land-use licences to be ‘equitably’ allocated by the state.

Earlier this week, the ANC’s Vuzumusi Xaba tried to play down the significance of state custodianship by suggesting that this would apply solely in the ‘period between acquisition and redistribution’.

However, there is nothing in the wording of subsection 25(5) to limit state custodianship in this way. Mr Xaba’s reassurance, if it is to be taken seriously at all, also overlooks the government’s State Land Lease and Disposal Policy (SLLDP) of 2013. Under this policy, land acquired for redistribution must be retained by the state and leased to land reform beneficiaries for a period of 50 years before an option to buy may be granted. On this basis, the ‘state custodianship’ that Mr Xaba sees as applying only ‘temporarily’ could last for half a century.

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SoldierMan

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If true, this would be the downfall of the Rand.
Foreign investment will pull out.

It's like the ANC is on a deliberate suicide mission, with foot now flat on the accelerator.

Our only hope would be the courts and the ConCourt.
 

Rocco1

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"But because the MPRDA instead vested all mineral resources in the custodianship of the state, the ANC argued that this was a mere deprivation for which no compensation was due. This argument was upheld, moreover, by the flawed majority ruling of the Constitutional Court in the Agri SA case in 2013."

~Not sure you hope in the courts is perhaps misplaced.

and given this has probably being happening for far longer - only the "right" judges are nominated

 

Fulcrum29

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If true, this would be the downfall of the Rand.
Foreign investment will pull out.

It's like the ANC is on a deliberate suicide mission, with foot now flat on the accelerator.

Our only hope would be the courts and the ConCourt.

Foreigners will engage in special exclusivity agreements or more negotiable leases. 'Everyone' is expecting a bad reaction, but it isn't necessarily the case. There will be an initial negative reaction, but it will recuperate.

It is the citizens who are at risk.
 

NarrowBandFtw

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I have said since day 1 that the state seeks custodianship, but everyone was like, "no". Just remember this isn't limited to land.
just imagine the magnitude of the incoming fahkup though ... communism has been tried and it failed when run by some of the most brilliant (albeit misguided) minds of its time like the Soviet Union or China at their peaks

just imagine our bunch of incompetent, already thoroughly corrupt, fahktards attempting it :eek:
 

Fulcrum29

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just imagine the magnitude of the incoming fahkup though ... communism has been tried and it failed when run by some of the most brilliant (albeit misguided) minds of its time like the Soviet Union or China at their peaks

just imagine our bunch of incompetent, already thoroughly corrupt, fahktards attempting it :eek:

Given the conditions our country is in, it will be the ordinary citizen paying patronage to the political elite. I can already see in my crystal ball how the state will argue that it is a necessity to sustain their social systems whilst they are popping their French imported champagne.

Foreign enterprises and investments won't give a schit, all they are interested in is the location which serves as a springboard. I am not talking about small businesses, all small businesses will be a victim.

The population needs to ask, in whose interest is this, the public's or the political elite?
 

R13...

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If true, this would be the downfall of the Rand.
Foreign investment will pull out.

It's like the ANC is on a deliberate suicide mission, with foot now flat on the accelerator.

Our only hope would be the courts and the ConCourt.
The nationalisation of mineral resources should have had a bigger impact. The IRR are given to alarmist opinion. They're some sort of super liberal thing so this isn't unexpected. EWC is a bad idea make no mistake but the sky isn't going to fall.
 

Mystic Twilight

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just imagine the magnitude of the incoming fahkup though ... communism has been tried and it failed when run by some of the most brilliant (albeit misguided) minds of its time like the Soviet Union or China at their peaks

just imagine our bunch of incompetent, already thoroughly corrupt, fahktards attempting it :eek:

Don't think this is communism in the form of equality and justice to bring the working class upliftment, this is straight up power consolidation and money grabbing.
 

Mekon

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call it what it is: communism

it's not really "stealthy" when we all expect it though
No not stealthy at all, just underhanded sneaky commie tactics. All I want at this point is for my kids who are young adults to get the f**k out of this misery of a country because the cANCer being vile little f
**kfaces will destroy it all.
 

NarrowBandFtw

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Don't think this is communism in the form of equality and justice to bring the working class upliftment, this is straight up power consolidation and money grabbing.
that's what communism always is, the noble principles have always just been spin to distract gullible idiots from the truth ...
 

Fulcrum29

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You can't really stealth much past the banks or past Zulu tribal chieftains. You can try but will not be successful.

In other news, Ramaphosa yesterday stated that custodianship is equal to nationalisation, and that the Ad Hoc Committee’s mandate is limited to making explicit what is already implicit in the current Constitution. He placed emphasis on title deeds and ownership being important, and stated that politicians should listen to the people and not the other way around. However, Ramaphosa did again address ‘our’ people in terms with what the dispossessed wanted, and not the nation as the whole. It seems that he seeks a hybrid system like where communal property rights in areas under traditional leadership is allowed.

I personally would like Ramaphosa to address us all equally, and should also check on his Frogs simmering away.

Anyway, the EFF as always,


As per the Investopedia legal dictionary,

https://www.investopedia.com/terms/n/nationalization.asp

What Is Nationalization?​

Nationalization refers to the action of a government taking control of a company or industry, which generally occurs without compensation for the loss of the net worth of seized assets and potential income. The action may be the result of a nation's attempt to consolidate power, resentment of foreign ownership of industries representing significant importance to local economies or to prop up failing industries.


What Is a Custodian?​

A custodian or custodian bank is a financial institution that holds customers' securities for safekeeping to prevent them from being stolen or lost. The custodian may hold stocks or other assets in electronic or physical form.

In short, Nationalisation and Custodianship aren’t the same. The state as a custodian may assume your risk by holding your securities in their name, which enables them with the right to assert possession should it be so required. Basically this would allow the state to act in your name meaning that they may appropriate your possessions where it is deemed necessary. By no means are the two equals, but both enables state possession.
 

rvZA

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Foreigners will engage in special exclusivity agreements or more negotiable leases. 'Everyone' is expecting a bad reaction, but it isn't necessarily the case. There will be an initial negative reaction, but it will recuperate.

It is the citizens who are at risk.

Don't agree. As with Venezuela, as with Zim and other countries that tried this before, everything will come tumbling down. After that, as you can see with Zim, there may never be a recovery again. Any small signs of recovery will be immaterial to the economy, government and the people of the country who will be eating rats, cockroaches, grass and sand to survive.

Remember, foreigners like Americans, British, Europeans, Canadians, Australians are mostly for the biggest parts dumb idiots. They are easily fooled. The South African government may 'exclude' them from expropriation without compensation. But, in 10 years from now they will realise that their investments and property values have become NIL as there will not be buyers. They will likely not be able to sell investments like land or property to local South Africans of foreigners. When they realize this and how they have been affected, it may be too late for them too.

They will eventually start complaining to their own governments who will then be forced to take action against South Africa. We are likely to see the same type of sanctions against leaders as you see in Zimbabwe, perhaps even worse here in SA. That will be the end for the country.

One things is certain. South Africans should prepare themselves to lose their properties and property rights. Whether this happens this year, in the next 10 years, 20 years or 100 years, it is coming.
 
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Sollie

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Don't agree. As with Venezuela, as with Zim and other countries that tried this before, everything will come tumbling down. After that, as you can see with Zim, there may never be a recovery again. Any small signs of recovery will be immaterial to the economy, government and the people of the country who will be eating rats, cockroaches, grass and sand to survive.

Remember, foreigners like Americans, British, Europeans, Canadians, Australians are mostly for the biggest parts dumb idiots. They are easily fooled. The South African government may 'exclude' them from expropriation without compensation. But, in 10 years from now they will realise that their investments and property values have become NIL as there will not be buyers. They will likely not be able to sell investments like land or property to local South Africans of foreigners. When they realize this and how they have been affected, it may be too late for them too.

They will eventually start complaining to their own governments who will then be forced to take action against South Africa. We are likely to see the same type of sanctions against leaders as you see in Zimbabwe, perhaps even worse here in SA. That will be the end for the country.
Or might not.

 

rvZA

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Or might not.


That law means nothing. Foreign investors still do have recourse to approach their own governments for protection, the same that happened in Zimbabwe. When this happens, South Africa, or perhaps just a few targeted government officials, will simply face sanctions and everything will collapse. The government will, at some point, have to repay trillions in debt to the foreign investors before sanctions will be lifted - the same as is happening in Zimbabwe at this point in time.

Besides, this is part and parcel of the reason why Ramaphosa does not get any meaningful foreign investments into SA. He himself admitted he is struggling to attract FDI. He just don't get why.
 

Thugscub

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Down the turd hole the turd continent goes.
Mud sandwiches for all.
Make that dust sandwiches for all, the government has already nationalised all the water in SA.
Breath deeply folks for sure as fck the twats will try to expropriate the air we breath.
 

SoldierMan

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Foreigners will engage in special exclusivity agreements or more negotiable leases. 'Everyone' is expecting a bad reaction, but it isn't necessarily the case. There will be an initial negative reaction, but it will recuperate.

It is the citizens who are at risk.

You're living in a dream world if you think this has a happy ending for the SA economy.
 
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