Settlement out of court offers hope for land compensation

A recent out-of-court settlement by Agriculture, Land Reform and Rural Development Minister Thoko Didiza in a land claims dispute may see government fork out more money for claims than the valuer-general deems they are worth.

Last week, a matter between land owners in KwaZulu-Natal and government over the valuation of 9,000 hectares of land ended in more than R8 million being awarded as just and equitable compensation to owners partially represented by AgriSA.

AgriSA Centre of Excellence’s Annelize Crosby said this was positive for other land owners, especially farmers, whose land becomes the subject of land claims.

The controversial Melmoth land claims, lodged by five groups of claimants against various farms in the Melmoth area, took an unexpected turn regarding compensation from the state to the land owners.

The land, which Crosby described as very productive, was initially valued at just over R3 million, nearly half the owners’ asking price.

This prompted them to turn to the Land Claims Court after a dispute with the former minister and the valuer-general.

The state had taken the view that the valuer-general was the final determinant on just and equitable compensation.

But Judge AJ Canca not only disagreed with that, he ruled that the valuer-general’s determinations were only a guideline for the minister and owners could get the Land Claims Court to make a determination in the event of a dispute.

The court postponed its ruling on compensation and the matter was set down for last week.

“But the day before the matter was to be heard, the minister made an offer in terms of the rules of the court to the land owners. It was more than the amount initially agreed upon and the reason she offered more was because that particular agreement was made last year in March and the increase in value and the value of the crops was taken into consideration,” said Crosby.

She said this could see more landowners approaching courts to determine compensation.

“The outcome brings some comfort to concerned land owners regarding the manner in which experts will deal with the concept of just and equitable compensation.”

– simnikiweh@ citizen.co.za

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