Sectional Titles Amendment Bill: Motion of desirability & deliberations; Report on Oversight visit to KZN & Gauteng prompted by recent unrest

Agriculture, Land Reform and Rural Development

24 August 2021
Chairperson: Nkosi Z Mandela (ANC)
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Meeting Summary

Tabled Committee Reports

The Committee convened virtually to consider and adopt the report on its oversight visit in KwaZulu-Natal (KZN) and the Sectional Titles Amendment Bill (STAB). Also present at the meeting were officials from the Department of Agriculture, Land Reform and Rural Development (DALRRD) and a parliamentary Legal Advisor.

The Chairperson said that Members from the Portfolio Committee on Agriculture, Land Reform and Rural Development as well as the National Council of Provinces (NCOP) Select Committee on Land Reform, Environment, Mineral Resources and Energy, had jointly conducted an oversight visit to KZN during the recent unrest. During the visit, Members had noted that some of the effects of the unrest were that farmers were unable to receive feed for their animals nor were they able to have their produce collected to be sold. Members agreed that it was difficult to quantify the costs of the damage. During the oversight visit, they would request that the KZN Department of Agriculture, Land Reform and Rural Development provide it with its Programme of Action. After concluding its deliberations on the report, the Committee adopted the report, with amendments.

The Committee considered the Sectional Titles Amendment Bill on a clause-by-clause basis. The Committee noted several objections to the amendments from the Legal Society of South Africa (LSSA), one of which was the proposal from the Department, that the number of board members in the Sectional Titles Regulation Board (STRB) be increased from seven to nine, due to the additional costs. It also recommended that subsection (2)(c), which recommends the inclusion of an additional conveyancer and official in the Deeds Registration office, be removed from the Bill. The Department agreed with this recommendation. The Department further recommended that those two professions rather be moved to the Sectional Titles Management Advisory Board (STMAB).

The Legal Society also objected to the provision brought about by the amendment of Section 60 of the Act, which states that the body corporate must provide for the areas that will be delineated on a sectional title scheme prior to it being ceded to the owners. The Legal Society objected to this because it felt that it was never contemplated that the delineation of exclusive use areas would be a prerequisite for the transfer thereof that would place an additional responsibility on the owner. The Department indicated that this might not be lawful and recommended that it be removed.

After concluding its deliberations, the Committee adopted the Sectional Titles Amendment Bill with amendments.

Meeting report

The Chairperson opened the virtual meeting, welcoming the Members and the Committee support staff. He conveyed condolences, on behalf of the Committee, to those who have lost loved ones during the pandemic.

The Committee Secretary, Ms Phumla Nyamza, requested that the Chairperson contact the Members from the National Council of Provinces (NCOP) to ascertain whether they had received the link for the meeting.

Committee Secretary, Ms Albertina Kakaza, indicated that the NCOP Members were attending a ministerial briefing.

The Chairperson requested that the meeting adjourn for ten minutes, so as to allow for the secretariat to attend to the matter.

The meeting was adjourned for ten minutes

The Chairperson clarified that the report will be adopted and debated in the separate Houses, with the debate in the National Assembly (NA) taking place the following day.

He indicated that the Committee was meeting today to consider the adoption of the report on the oversight visit to KwaZulu-Natal (KZN), and to further deliberate on the Sectional Titles Amendment Bill (STAB). Also, as an organ of Parliament, it is important that the Committee should never lose sight of the critical role that oversight plays in a democracy.

He said that, in the aftermath of the recent attempted insurrection, looting and violence, it was necessary for the Committee to assess the extent to which the agricultural sector, particularly the agro-processing value chains, the agricultural food chain and logistics, was affected. The Committee received reports of damage to farms and the related impact on the government's land reform programmes. With the significant destruction caused to malls, supermarkets and other informal trading outlets, unemployment in KZN was further entrenched.

The Committee felt that the oversight visit had provided it with a good insight into the local politics in the area, particularly the issues that prevented South Africans from reaching their national aspirations. 

Special Joint Oversight Visit Report to Kwazulu-Natal: Portfolio Committee on Agriculture, Land Reform and Rural Development and the Select Committee on Land Reform, Environment, Mineral Resources and Energy

Ms A Steyn (DA) asked how officials from the King Cetshwayo District Municipality had estimated that it required R127 million to financially recover from the looting and violence. She also asked whether the amount related to the damage caused during the failed insurrection.

The Chairperson indicated that the estimates provided by the various districts and local municipalities related to money required for pre-existing issues. During the oversight visit, the Committee was informed by the Department that the agricultural sector in KZN required R1.1 billion to recover from the damage.

Committee Content Advisor, Mr Tshililo Manenzhe, said that it would be difficult to ascertain the cost of the damage to the sector. He suggested that the Committee allow for the Department to complete its process of quantifying the cost of the damage, and the money required to recover. 

Ms Steyn asked whether Ms Thobile (one of the farmers whose operations were affected by the unrest) was unable to send her meat to a particular slaughterhouse in KZN.

The Chairperson mentioned that, during the unrest, trucks were unable to provide Ms Thobile with feed, neither were they able to pick up her pigs to send to the abattoir. For some time, she could not sell to her local markets, so she had to look to sell in Mpumalanga. She had asked the Committee for assistance for money to pay for feed and her labourers.

Mr N Masipa (DA) said that the Committee had not met with all districts. As such, the report should state that the Committee interacted with some of the districts (and not with all of them).

Ms Steyn asked if the Committee was able to confirm whether some of the markets had closed due to the looting.

The Chairperson indicated that the oversight visit was jointly done between the NA and the NCOP. The report presented before the Committee related to the findings of the oversight team.

Ms M Tlhape (ANC) mentioned that during its oversight visit, the Committee observed that sugar farmers also report to the Department of Trade Industry and Competition (DTIC). As a result, moving forward, Members should consider the role the DTIC has, to avoid the two Committee’s duplicating the same functions.

The Chairperson said that the suggestion would be added into the report.

Ms Steyn indicated that it will be important for the Committee to request that the KZN Department of Land Reform and Rural Development (DALRRD) submit its Programme of Action to it, so that it is able to understand the specific details.

The Chairperson requested a mover for the adoption of the report on the special joint oversight visit to KZN by the Portfolio Committee on Agriculture, Land Reform and Rural Development and the NCOP Land Reform, Environment, Mineral Resources and Energy.

Ms Tlhape moved for the adoption of the report, with the amendments.

Ms K Mahlatsi (ANC) moved to second the adoption of the report, with the amendments.

The Chairperson mentioned that the report is scheduled to be debated on the following day.

The Committee then referred to the second item on the agenda, which was the motion of desirability and further deliberations on the STAB.

Motion on Desirability and Further Deliberations on the Sectional Titles Amendment Bill (STAB)

The Chairperson put the motion on desirability before the Committee and requested a mover.

Ms Steyn moved to approve the motion of desirability, and requested that the Committee proceed accordingly.

Ms M Mahlo (ANC) seconded the motion of desirability and requested that the Committee proceed accordingly.

Consideration and Adoption of the Sectional Titles Amendment Bill

Ms Nyamza suggested that the Committee should deal with the Bill clause-by-clause.

The Chairperson requested that the Bill be put before the Committee so that it could adopt each clause in order.

Ms Tlhape said that she thought the Chairperson would allow for Members to interact with each of the clauses, and then look to amend and adopt them.

Clause One

The Chairperson asked if Members had questions for clarity or comments regarding clause one.

A Parliamentary Legal Advisor, Ms Sueanne Isaacs, said that the definition of the Sectional Titles Scheme should include closed brackets.

The Deputy Registrar of Deeds at the DALRRD, Ms Antoinette Reynolds, referring to paragraph three of the long title, where it speaks of a certificate issued by an architect or land surveyor, said that, at the public hearings, the Department agreed with the Western Cape (WC) provincial government that clause three should be removed from the Bill. If the clause is removed from the Bill, then the sentence in paragraph three of the long title should be deleted. 

The Chairperson asked Members whether they should amend the long title first or deal with it towards the end of the proceedings. 

Ms Tlhape indicated that it would be preferable for the Committee to continue in order. However, she also moved for the Committee to remove the sentence from the clause.

Ms Reynolds indicated that the Department agreed with the Legal Society of South Africa (LSSA) proposal that Section 60, clause 18 of the Bill should be removed from the Bill. If that were to be the case, then the second last sentence on the long title (which speaks of amending the transitional provisions) should also be removed. 

The Chairperson requested a mover for the removal of the second last sentence in the long title.

Ms Isaacs advised that the Committee deliberate on the 18 clauses first before amending the long title, as there are various amendments that will affect it.

The Chairperson agreed. He requested a mover for the adoption of clause one.

Ms Mahlatsi asked whether the Department is permitted to participate in the process of amending the Bill. 

The Chairperson clarified that both the Department and the legal advisors will, from time to time, remind the Committee of the decisions reached during the previous engagements. All the clauses will only be adopted by the Committee.

Ms Tlhape withdrew her motion to remove the second last sentence in the long title, based on the advice provided by the legal advisors.

Ms Mahlo moved for the adoption of clause one, as amended.

Mr N Capa (ANC) seconded the adoption of clause one, as amended.

Clause Two

The Chairperson requested a mover for the adoption of clause two of the Bill, as amended.

Ms Tlhape moved for the adoption clause two, as amended.

Mr Capa seconded the adoption of clause two, as amended.

Clause Three

Ms Reynolds indicated that the Department agreed with the WC Provincial Government that the amendment of section seven in clause three be omitted from the Bill.

The Chairperson requested for a mover of the adoption of clause three, with the amendments.

Ms Tlhape moved for the adoption of clause three, with the amendments.

Ms Mahlatsi seconded the adoption of clause three, with the amendments.

Clause Four

The Chairperson requested a mover for the adoption of clause four.

Ms Reynolds said that the omissions from the Bill will have an impact on the numbering of the clauses. Referring to section seven of clause three in the Bill, she explained that the Department felt that the amendment was not necessary because if it were to be left in it, there would remain a significant responsibility on the land surveyors and the architects when they have to lodge sectional plans to the Surveyor-General. When the sectional plans are lodged, they should include a certificate that indicates that the plans comply with the certain legislation, and other requirements of the Act.

There was a proposal that the certificate must also make reference to section 20(6)(2) of the Spatial Planning and Land Use Management Act but the WC government objected on the basis that architect and land surveyor would be taking over functions currently carried by municipalities (as they are responsible for ensuring that the plans comply with the legislation). The Department agreed with the objection, and also suggested that section seven should be left out of the Bill. She asked that Members consider omitting the section from the Bill.

The Chairperson said that, because the Committee is only adopting the clauses and not dealing with the technical formalities of the Bill, it will consider the proposal to omit the section at a later stage.

Ms Mahlatsi said that she did not understand the Department’s request to the Committee.

Ms Reynolds said that she had requested that the Committee consider removing section seven of clause three from the Bill.

Ms Mahlatsi recommended that the Committee consider this proposal in another session.

Ms T Breedt (FF+) said that she was under the impression that when the Committee had adopted clause three, it had omitted section seven.

The Chairperson said that when they moved for the adoption of clause three, the Members had effected the changes, which also had an effect on the broader definitions. 

Ms Isaac indicated that the Committee had agreed to omit section seven of clause three. So, in effect, it had been rejected.

The Chairperson requested for a mover for the adoption of clause four.

Ms Tlhape moved for the adoption of clause for, with the amendments.

Mr Capa seconded the adoption of clause four, with the amendments.

Clause Five

The Chairperson requested a movement for the adoption of clause five, with the amendments.

Ms Mahlo moved to adopt clause five, with the amendments.

Ms Tlhape seconded the adoption of clause five, with the amendments.

Clause Six

The Chairperson requested a movement for the adoption of clause six, with the amendments.

Ms Tlhape moved for the adoption of clause six, with the amendments.

Ms Mahlatsi seconded the adoption of clause six, with the amendments.

Clause Seven

The Chairperson requested a mover for the adoption of clause seven, with the amendments.

Ms Mahlatsi moved for the adoption of clause seven, with the amendments.

Ms Tlhape moved for the adoption of clause seven, with the amendments.

Clause Eight

The Chairperson moved for the adoption of clause eight, with the amendments.

Ms Mahlatsi moved for the adoption of clause eight, with the amendments.

Ms Mahlo seconded the adoption of clause eight, with the amendments.

Clause Nine

The Chairperson moved for the adoption of clause nine, with the amendments.

Ms Tlhape moved for the adoption of clause nine, with the amendments.

Ms Mahlo seconded the adoption of clause nine, with the amendments.

Clause Ten

The Chairperson requested a mover for the adoption of clause ten, with the amendments.

Ms Tlhape moved for the adoption of clause ten, with the amendments.

Mr Capa seconded the adoption of clause ten, with the amendments.

Clause Eleven

The Chairperson requested a mover for the adoption of clause eleven.

Ms Tlhape moved for the adoption clause eleven, with the amendments.

Mr Capa seconded the move to adopt clause eleven, with the amendments.

Clause Twelve

The Chairperson requested a mover for the adoption of clause twelve, with the amendments.

Mr Capa moved for the adoption of clause twelve, with the amendments.

Ms Mahlatsi seconded the adoption of clause twelve, with the amendments.

Clause Thirteen

The Chairperson requested for a mover for the adoption of clause thirteen.

Ms Tlhape moved for the adoption of clause thirteen, as outlined in the Bill.

Mr Capa seconded the adoption of clause thirteen, as outlined in the Bill.

Clause Fourteen

The Chairperson requested for a mover the adoption of clause fourteen.

Ms Tlhape moved for the adoption of clause fourteen, as outlined in the Bill.

Mr Capa seconded the adoption of clause fourteen, as outlined in the Bill.

Clause Fifteen

The Chairperson requested a mover for the adoption of clause fifteen.

Mr Capa moved for the adoption of clause fifteen, as outlined in the Bill.

Ms Mahlatsi seconded the adoption of clause fifteen, as outlined in the Bill.

Clause Sixteen

Ms Reynolds said that the amendment of section 54 provides for the establishment of the Sectional Titles Regulations Board (STRB). The LSSA objected to the proposal from the Department to increase the members in the board from seven to nine, due to additional costs. It also recommended that subsection (2)(c), which recommends the inclusion of an additional conveyancer and official in the Deeds Registration office, be removed from the Bill – which the Department agreed with. The Department recommended that those two professions rather be moved to the Sectional Titles Management Advisory Board (STMAB).

She said that, with the removal of paragraph (a), paragraph (b) in clause 16 will become paragraph (a). The Committee would then have to insert a new paragraph (b). 

The Department will assist, if the board members agree as well, to not increase the numbers to seven.

Ms Tlhape asked what the Department’s reasons were for suggesting that the board be increased from seven to nine members. In addition, why has the LSSA objected to the increase?

Mr Capa, referring to the nomination of a board member in paragraph (d), asked what reasons would lead to the failure of the nomination of a candidate for the board. 

Ms Reynolds indicated that, due to the workload of a conveyancer, it provided for an additional one. It also provided for an additional registrar of deeds to assist the current team with the work demands. These additions would have increased the number of board members from nine to nine. LSSA objected to their additions based on the increased costs that would be incurred. However, it agreed that there should be two conveyancers and registrar of deeds. If the two proposed professions are moved to the STMAB, then the current number of board members in the STRB would remain at seven. 

Referring to the question on the amendment in paragraph d, she said that board members are usually appointed for a period of three years. Explaining the nomination process, she said that the Department writes to the LSSA to request nominations for individuals who will be appointed by the Minister but if they fail to provide the nominations, the Minister can appoint a person he/she deems to be suitable. 

The Chairperson requested a mover for the adoption of clause sixteen, with the amendments.

Mr Capa moved for the adoption of clause sixteen, with the amendments.

Ms Tlhape moved to second the adoption of clause sixteen, with the amendments.

Clause Seventeen

The Chairperson requested a mover for the adoption of clause seventeen, with the amendments.

Mr Capa moved for the adoption of clause seventeen, with the amendments.

Ms Mahlo seconded the adoption of clause seventeen, with the amendments.

Clause Eighteen

Ms Reynolds said that the LSSA objected to the amendment of Section 60 of the Act. She explained that this section provides for the notarial deed of the cession of the right to exclusive use as referred to in paragraph (a). Under the 1971 Sectional Titles Act, which has been replaced by 86 Act, the exclusive areas were not depicted on the sectional title plans. The amendment in Section 60 provides that the body corporate must provide for the areas that will be delineated on a sectional title scheme prior to it being ceded to the owners. LSSA objected to this because it felt that it was never contemplated that the delineation of exclusive use areas would be a prerequisite for the transfer thereof that would place an additional responsibility on the owner. The Department indicated that this might not be lawful, and recommended that it be removed.

Ms Mahlo asked if the Committee was adopting clause eighteen, with the amendments.

The Chairperson asked if Members had any comments relating to the statement made by the Department, on Section 60.

Ms Mahlo asked if the Department was advising that they not remove the clause.

Ms Steyn agreed with the proposal made by the department on the amendment. She asked why the Department did not draft a new Bill as several amendments had been made to the Bill. She also said she was concerned about the desirability of adopting the Bill.

The Chairperson requested that the Committee Legal Advisor advise it regarding the amendment of Section 60 in clause 18.

Ms Isaacs agreed with the LSSA’s view that the clause be removed. 

The Chairperson requested a mover for the adoption of clause eighteen, with the amendments.

Ms Mahlo moved for the adoption of clause 18, with the amendments.

Mr Capa seconded the adoption of clause 18, amendments.

Ms Isaacs reminded the Committee that it had to make changes to the long title.

The Long Title

The Chairperson said, that having dealt with all the clauses, the Committee would now focus on affecting the changes made.

Ms Reynolds suggested that the sentence in the third line of the long title should be removed. 

Referring to clause sixteen, which dealt with the board membership, she said that the phrase ‘to regulate the board’ should be removed. In addition, she suggested that the second last sentence of the long title (to amend the transitional provisions) be removed. The remainder of the long title was acceptable.

The Chairperson said that the third line in the long title, as well as the transitional provisions, would be removed from the Bill.

He requested for a mover for the adoption of the STAB, with the amendments.

Ms Tlhape moved for the adoption of the STAB, with the amendments.

Mr Capa seconded the move to adopt the STAB, with the amendments.

Ms T Mbabama (DA) asked when the Committee would receive the final amended Bill.

Ms Nyamza explained that, procedurally, the Committee will await the advisor to compile an A list with the amendments that the Committee has agreed upon. Afterwards, the Committee will have the opportunity to analyse the final version of the Bill, which is known as the B-Bill, and then deliberate on adopting it.

The Chairperson said that the Committee would allow for the process to unfold.

He thanked the Members and the officials for participating in the proceedings.

The meeting was adjourned.

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