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Law allows seizure of govt assets

Cape Town - The National Assembly on Wednesday adopted the State Liability Amendment Bill, which provides for the attachment of state property if government departments failed to honour money orders.

The legislation gives state departments 30 days to comply with a court order for the payment of the sum, whereafter the creditor may apply for the attachment of moveable property of the state.

The provision is limited by a clause excluding the attachmnent of property that would severely disrupt service delivery or threaten the security of the republic.

The bill was drafted in response to a 2008 Constitutional Court ruling in the Nyathi v the Minister of Justice that section 3 of the existing act was unconstitutional because it prohibited citizens from executing debt orders against the government by attaching assets.

Lawmakers have also included a provision involving national treasury if other departments defaulted.

It enables treasury to withold funds until the relevant department had made provision to pay the money in accordance with the court order.
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