The metro argues that the needs of residents are more important than the rights of the company that owned the land
The City of Ekurhuleni has argued that it doesn’t have to compensate a company after it expropriated its land, saying its interests are outweighed by the needs of residents.
This has emerged in court papers filed by the metro in a case regarding the land it expropriated in Driefontein, Boksburg, according to City Press.
Company wants compensation for the land
The company, Business Venture Investments 900 (BVI 900) is not contesting the expropriation of the land, but the lack of compensation.
Mediation will take place in October, before a trial at the Johannesburg High Court in February 2026.
The dispute began in 2019 after the City of Ekurhuleni issued a formal expropriation notice and took the land. BVI 900 then lodged a claim for R30 million based on independent valuations.
However, BVI 900 received an offer from the metro’s city manager Imogen Mashazi that said: “The City of Ekurhuleni offers zero compensation … the amount of R0 (zero rand).”
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City of Ekurhuleni says it can’t afford to pay for land
The metro has essentially claimed that the cost of paying for the land is too expensive for it.
“Expropriation of property at market value on a willing seller — willing buyer basis is beyond the capacity of the state, and would make the fulfilment of the rights in section 26 of the constitution an illusion,” it said in its court papers.
It also argued that it is already paying a large amount of money to provide services to more than 100 informal settlements in the metro.
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Expropriation Bill signed into law
In addition, the City of Ekurhuleni asked the court to declare the 1975 Expropriation Act unconstitutional. This law states that fair compensation must be given for expropriated land.
Earlier this year, President Cyril Ramaphosa signed the Expropriation Bill into law.
The Expropriation Act states that land can be taken without compensation if it’s in the interest of the public or for a public purpose.
At the time, Ramaphosa said the 1975 Expropriation Act was outdated.
Though the Expropriation Act wasn’t applicable when the land in Driefontein was taken by the City of Ekurhuleni, this case could prove to be a test of how far the state is allowed to go when expropriating land without compensation.
After the Expropriation Bill was signed into law, the DA, Freedom Front Plus and several civil society groups voiced their opposition and threatened legal action.
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