proposed ban on sale of local land to foreigners axed
4 September 2007

The controversial proposed temporary ban on the sale of property to foreigners has been scrapped by the government-appointed panel looking into the development of policy on foreign land ownership.

The temporary ban was proposed in the government's interim report last year. Instead, it has recommended that a limited moratorium of two years be placed on the sale of state land to foreigners. But now recommended an outright prohibition on foreign ownership in classified areas on the grounds of national interest, environmental considerations, areas of historical and cultural significance, and national security.

The temporary prohibition on the disposal of state land was meant to prevent certain spheres of government and organs of state from disposing of land that might be used for land reform and human settlements.

The report said the state land disposal committee and provincial committees had no jurisdiction over municipal land, which the panel believed was unconstitutionally categorised as "private land".

"The government and all the organs of state ought to lead by example in implementing the regulatory regime on foreign land ownership and should refrain from disposing or changing land ownership, which may undermine land reform and compromise the sovereignty of the state," it said.

Other recommendations in the report included the compulsory disclosure of nationality, race and gender, and other information by all owners of properties to improve the information and statistics in the deeds registries; a similar compulsory disclosure of information about property ownership by all companies, close corporations and trusts; and measures to deal with fronting.

Fronting was identified as an issue that could undermine the government's policy on land reform and regulation of foreign land ownership, and therefore recommended measures should be included in any policy formulation.

 Roy Cokayne, www.busrep.co.za