The legal dispute over the City of Ekurhuleni’s attempt to expropriate a privately owned piece of land in Boksburg without compensation is scheduled to enter court-directed mediation today (October 31).

In 2019. The city used existing powers to expropriate portion 406 of the farm Driefontein 85 IR, measuring just over 33 hectares, for a public purpose: a national housing programme.
In response to the metro’s expropriation notice, the landowners, Business Venture Investments 900, lodged a claim for R30 050 000 in just and equitable compensation for the expropriation of their land.
However, in response to the claimant’s application for compensation, the metro refused to pay anything and told the owners that it was of the view that an offer of R0 (zero rand) compensation was a ‘just and equitable’ offer.

Since then, the longstanding first case of the contentious land expropriation without compensation for a government housing project in South Africa has seen the metro and the landowner making some efforts to amicably resolve their widely differing interpretations of what constitute just and equitable compensation for the expropriated land.
Adriaan Van Niekerk, a director at the law firm (MacRobert Attorneys) representing the landowner, confirmed that their client had, in this landmark case, made several attempts to amicably get the ‘offer’ of nil compensation overturned, but no agreement could be reached between the parties involved.

“I can confirm that a court-directed mediation on this matter has been scheduled to take place on October 31, and if no settlement is reached at the mediation, the matter is set to go to trial in February 2026. As the matter is pending before the courts, I am unable to provide further comment or details at this time,” explained Van Niekerk.
On the other hand, the metro refused to share any information on this important matter, citing the sub judice rule as a legal justification for not publicly sharing any information.
However, it’s understood that the city has been defending the nil compensation decision.
Based on information contained in legal documents seen by the Boksburg Advertiser, the metro rejected the claimant’s application for about R30m compensation, and stated that its decision was informed by several factors and relevant regulations that set out the conditions for nil compensation.

The landowners are not contesting the expropriation of the land, but the zero rand compensation.
Several civil society groups and some political parties, including the Freedom Front Plus, have voiced their opposition to the expropriation without compensation offer.

FF Plus weigh in on nil compensation
The Freedom Front Plus has called on all stakeholders to join hands to nip expropriation of property without compensation in Ekurhuleni in the bud, as it believes that it is quite realistic to expect a wave of expropriations without compensation if the city is ultimately successful in this case.

FF Plus leader, Dr Corne Mulder, said: “All stakeholders must join hands in preventing the Ekurhuleni metro’s bid to expropriate land worth approximately R30m. without compensation for setting a legal precedent.
“It may simultaneously create a dangerous precedent for the future, which could deprive landowners of any future legal recourse.
“This is a serious matter affecting all South Africans. So, for now, all South Africans should set their differences aside and join hands to safeguard property rights in our country.”
Mulder pointed out that the landowner is not contesting the expropriation, but objects to the nil compensation offered.

“This case, which has a direct bearing on section 25 of South Africa’s Constitution, will be heard by the Johannesburg High Court in February next year. In light of the seriousness of the matter, FF Plus will engage with organisations, such as the Southern African Agri Initiative, the Transvaal Agricultural Union, Sakeliga and other interest groups, to take concerted action.

“This incident of expropriation in Ekurhuleni clearly demonstrates that no privately owned land in South Africa is safe.

“This serves as tangible proof that property rights in South Africa are by no means secure, regardless of the Constitution’s provisions.”
President Cyril Ramaphosa signed into law the Expropriation Act, allowing land expropriation by the state without compensation, a move that was rejected by some opposition parties, including the DA and IFP.

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