Hellbent on Badplaas

Both the land Claims court and the Supreme Court of Appeal have ruled that there is no evidence of fraudulently-inflated land values in the Badplaas area.

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Nevertheless, minister of agriculture Lulama Xingwana, and acting director general of land affairs Tozi Gwanya, persist in allegations that irregularities took place when the land was initially valued. They have now appealed to the Constitutional Court tohave the previous court rulings overturned. The dispute arose when then-national land claims commissioner Gwanya said that a re-evaluation of 21 farms in the Badplaas area indicated that prices for land earmarked for sale to government had been fraudulently inflated by an average of 30%. That resulted in Nceba Nqana, Mpumalanga’s regional land claims commissioner, being booted from the commission. 

The minister and Gwanya continue to use Badplaas as an example of commercial farmers’ bad faith. Last week Gwanya was quoted as saying not only white farmers, but also members of Nqana’s team, were responsible for “this corruption”, which has already cost tax payers about R40 million. However, it’s actually the court cases that are costing tax payers money.

The Department of Land Affairs stakes its case on a forensic audit by Ernst and Young, which suggested that Nqana and some of his staff colluded with property speculators to systematically manipulate sales prices or, even bankroll some of the crooked deals. Having failed to substantiate these allegations, the department lost its case in the Land Claims Court on 26 July 2005.

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The landowners had taken the dispute to court when the department, as the respondents, refused to pay what it said were the inflated prices. The department then went through a messy appeals process against Land Claims Court judge Antonie Geldenhuys’s order to pay, upon registration of transfer, the agreed purchase prices. The properties had been purchased by the department from the D and F Wevell Trust, John Clarke, Rosemary Clarke and Ntsingani Farms CC.

Appeal denied

On 6 December 2005, Geldenhuys dismissed an application for condonation for the late delivery of the respondents’ application for leave to appeal. On 3 March 2006 he dismissed the application for leave to appeal that latter decision. The department then applied to the Appeals Court for leave to appeal. Court judge JA Cloete ruled against the department, saying there was simply nothing to suggest fraud, and the application was dismissed, with costs. Currently Constitutional Court Chief Justice Pius Langa is considering the department’s appeal application. Gwanya and the ministry were unavailable for comment.