Legal action taken against state conveyancers

After waiting a year and half for state-appointed transfer attorneys to pay over money outstanding after a land restitution transfer, a group of Limpopo farmers have decided to initiate civil action against the attorneys.
Issue date: 07 March 2008

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After waiting a year and half for state-appointed transfer attorneys to pay over money outstanding after a land restitution transfer, a group of Limpopo farmers have decided to initiate civil action against the attorneys.

The land was transferred in August 2006, and Limpopo land claims commissioner Mashile Mokono has signed off approval that everything on the farms was intact, as per the sales agreements.  The attorneys, who were to keep the outstanding 3% of the payment in trust until the approval had been signed, were supposed to transfer the money within five working days after the approval. But the farmers are still waiting. The attorneys stall their inquiries, saying the person responsible for the transfer of trust money is not available. But things came to a head when one of the farmers, who wishes to remain anonymous for fear of victimisation, inquired about the interest earned on his money as he had to declare it in his tax assessment. Again he was stalled, but then a new PA provided him with the bank statements for the trust account – which reflected that the funds were withdrawn on 17 October last year. He was told that the money was paid into another account which would earn the farmers more interest, but to date nobody at the law firm handling transfers for the Land Claims Commission could provide the farmers with bank statements proving that their money is not gone.

The group of farmers, who sold their farms for restitution to the Mashishimane clan near Tzaneen, have now brought a collective civil claim against the state-appointed conveyancers.

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Government insists on own conveyancers

In 2005/06 Mokono lobbied aggressively for conveyance attorneys in land reform transactions to be appointed by government. Traditionally the seller of a property appoints the conveyancer, but Mokono argued that choosing his own conveyancers would let the land claims commission control the entire process, facilitating speedy transfers. He also said black law firms should share in the spoils of the restitution process. White farmers, he argued, only appoint white lawyers. The then-minister of land and agriculture, Thoko Didiza, granted his request despite heavy criticism from parliamentary opposition.

Didiza has now moved on to the Department of Public Works. Sources within Limpopo Land Affairs told Farmer’s Weekly the land affairs department’s legal team refused to get involved in this matter. Last year Mokono told farmers the situation was becoming an embarrassment to him and vowed to personally take care of cases were money wasn’t being paid to farmers. But the farmers still don’t have their money, or at least proof that it hasn’t gone missing. The law firm handling their case has also reported the missing funds to the Law Society for investigation. – Jasper Raats