Nedbank explains their stance on expropriation without compensation
Bond remains contractual agreement between owner and bank.
In the wake of an email circulating on social media claiming that Nedbank will demand repayment of bonds even if a property is expropriated without compensation (EWC), Nebank’s Kedibone Molopyane, Head of Group Media Relations, has clarified their stance on the issue.
She has responded as follows to a request from the Record for comment. “The land reform process, which is currently before Parliament, has sparked much debate locally and globally. As a matter of national significance, Nedbank has an important role to play in this process and how it unfolds.
Read the initial article here:
https://www.citizen.co.za/roodepoort-record/2018/08/29/nedbank-email-causes-furore-2/
“A pragmatic and sustainable approach to land reform is necessary to address the inequalities owing to our country’s history. Nedbank believes that it is vital that this sensitive and important issue is handled appropriately to ensure that there are no adverse impacts on our economic growth and food security,” said Molopyane.
“President Cyril Ramaphosa clarified in the Financial Times on 24 August that ‘This is no land grab. Nor is it an assault on private ownership of property.
The ANC has been clear that its land reform programme should not undermine future investment in the economy or damage agricultural production and food security’.
“Currently, the Constitutional Review Committee is investigating proposed changes to section 25 of the Constitution, which still needs to be fully debated and will have to pass constitutional and legal muster on multiple fronts.
“We believe that it would be wise to wait for this process to be finalised rather than to pre-empt this without the detail. We urge our clients to be patient as this process unfolds. Until there is further progress, it is business as usual at Nedbank. We continue to assess and grant new mortgage loans as per our usual rules and processes. Bond repayments, which are the subject of contractual agreements, remain due and payable,” said Molopyane.
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