DA issues a warning to Ramaphosa

Government of National Unity (GNU) member, the Democratic Alliance (DA), has criticised President Cyril Ramaphosa over signing the Expropriation Bill, with the party believing that the coalition needs a reset.
After losing its majority in the 2024 election, the ANC formed the GNU with several other parties, with the DA easily the largest partner.
The formation of the GNU led to widespread positive investor sentiment, boosting the rand and other financial assets.
DA leader and Minister of Agriculture John Steenhuisen said that the party has committed to sharing power with the ANC and not “further destructive policies.”
He thus hit out at the ANC for not negotiating with the party after Ramaphosa signed the Expropriation Bill into law earlier this week.
Ramaphosa was criticised for not informing Public Works Minister Dean Macpherson.
Steenhuisen also criticised Health Minister Aaron Motsaleidi for “declaring war” with the GNU at the World Economic Forum when it comes to concerns about the NHI.
The DA said that the party wants a ‘GNU reset.’
To do so, Steenhuisen wrote to the President to note the following:
- To reject the signing of the Act, which happened despite fears of unconstitutionality and without consulting.
- The DA’s concerns with the NHI, such as its “assault” on medical aids.
- To focus on economic growth, job creation and budget allowances.
- To record the failure to create an effective dispute system as well as the failure of the GNU’s current clearing house.
He added that clause 19 of the statement of intent states that consensus can be met if parties representing 60% of seats in the National Assembly agree. This could only include the DA and ANC.
He also raised clause 20 which states that “the parties to the GNU shall also establish dispute resolution or deadlock breaking mechanisms, in instances where sufficient consensus is not reached. Parties should raise disputes within the mechanisms created for this purpose.”
Steenhusien said that the party would seriously consider its future in the GNU if it cannot fulfil its mandate to create jobs and boost economic growth.
“The DA will not be reduced to mere spectators of a government of which we bring a large part of the seats,” said Steenhusien.
He added that it will engage with other parties critical of the ANC’s latest moves, such as the IFP.
If the reset fails, Steenhuisen said that the party would have to reconsider its options on how to serve its voters.
That said, the Minister hopes that the ANC and other parties will meet to form a new policy agenda that aligns with its mandate.
Expropriation Bill
The Expropriation Bill allows state organs to expropriate land in the public interest, which appeals apartheid-era Expropriation Act of 1975.
The Bill aligns with section 25 of the Constitution, which states that expropriation is an essential mechanism for the state to acquire someone’s property in the public interest.
Nevertheless, this is still subject to just and equitable compensation being paid.
However, the Presidency said that an expropriating authority cannot expropriate one’s property arbitrarily or for a purpose other than a public purpose or in the public interest.
Moreover, expropriation can only occur if the expropriating authority has failed to reach an agreement with the owner or holder of a right in property on reasonable terms.
The law also states that disputes will be referred to mediation or appropriate courts.
Notably, Macpherson’s department will oversee the law, with the Minister stating that no expropriation of private property without compensation will occur on his watch.
National Health Insurance (NHI) Bill.
Ramaphosa signed the controversial National Health Insurance Bill into law last year ahead of the National Elections.
The Bill aims to introduce universal healthcare in South Africa, with the state acting as a buyer of healthcare goods for the public.
However, it also seeks to limit the powers of medical aid, which will only be able to cover additional benefits that the NHI Fund does not pay.
The Bill has received widespread condemnation from members of the public, GNU members and opposition parties, medical aid schemes and even parliament’s legal team.
Estimates of the GNU’s costs have varied, but the Department of Health projects an annual expenditure of approximately R200 billion, which is seen as highly conservative.
There are extreme concerns that the NHI will also be a new looting scheme amidst widespread corruption at other state-owned enterprises.
Although the DA agreed that universal healthcare is essential, Steenhuisen argued that private-public partnerships are better for the nation.