Xingwana blames farmers for department running out of money

Government had run out of money for its land reform programme two months before the end of the financial year said land and agriculture minister Lulama Xingwana, who blamed white farmers for inflating prices.
“Our budget for this year is depleted because farmers escalate prices when they know government must buy,” she told a media briefing in Pretoria.
Land affairs officials said the department had spent its R6,6 billion land reform budget by early February. The budget crunch had delayed finalisation of several major restitution projects worth between R600 million and R800 million each, which should have been wrapped up in 2008/09. Most are in KwaZulu-Natal, but anecdotal evidence suggests the problem is widespread.
Correspondence seen by Farmer’s Weekly shows the Northern Cape and Free State land claims commission was unable to purchase several properties late last year because it had run out of money.
“It’s with regret this letter serves to inform you the Department of Land Affairs has been unable to secure sufficient funds to purchase earmarked farms,” says a letter sent in December. “In the next financial year, when new budget allocations are made, you will be given first preference.”
The next budget allocation for land reform, of R6,83 billion, is due in April. But this doesn’t mean funds will start flowing immediately for properties that should have been bought in the financial year 2008/09, as budgeting processes will have to be repeated, leading to further substantial delays.
Escalating land costs prompted government to devise “creative ways” of bringing down the price tag of settling claims, said acting chief land claims commissioner Blessing Mphela. These include persuading owners to retain a portion of their property.
“Claimants must realise we’re all feeling the pinch and they have to accept less,” said Mphela. “I expect to announce the finalisation of a major claim near Ladysmith in KwaZulu-Natal, where I saved R250 million by excising several game lodges.”
Xingwana also questioned why government should pay exorbitant prices for land turned into lifestyle estates when landowners had paid farm prices. “This is inflating the price of land,” said Xingwana.
She declined to be drawn on whether she would use the threat of expropriation to get farmers to accept a lower price for their land.
Last year Parliament shelved a law that would have made it easier for government to expropriate at below market value, arguing it might prove unconstitutional. – Stephan Hofstätter