Prompt and adequate compensation as amendments to ‘Land Acquisition’ Act passed

Amendments to the Acquisition of Lands for Public Purposes Act to guarantee “prompt” payment and “adequate” compensation in cases where the government needs to acquire private properties and land for public use were passed Wednesday in the National Assembly.

The government used its majority in the House to vote for passage of the Bill containing the amendments. The opposition had promised support to the Bill after meeting with the Attorney General on Tuesday and having their questions clarified. However, on Wednesday, they wanted the Bill to be sent to a special Parliamentary committee, where it could have been stalled.

The new law, authorising the State to acquire private properties and land for public purposes, does not introduce new powers to the government, Attorney General and Minister of Legal Affairs Anil Nandlall sought to remind the sitting of the legislature. He noted that the law existed since 1914 and has been revised over the years. The only change the government sought was to ensure that where properties are acquired that the owners received prompt and adequate compensation.

Clause 2 of the Bill amends Section 7 (1) of the previous Act by providing that the handing over of the land in the State is subject to prompt payment or any adequate compensation. Secondly, the amendment guarantees the State’s right to vacate possession of the land that is acquired.

Nandlall sought to explain that the subject minister cannot simply “wake up” one day and decide he wants to procure private lands, but this requires a thorough procedure and specific requirements.

During his address at the Arthur Chung Conference Centre, Liliendaal, he stressed that there is no new power being given to the government, but that the power has always resided with the State.

Opposition Member of Parliament Ganesh Mahipaul, during his address, accused the government of trying to amend the act in a piece meal fashion, and called for it to be sent to a Special Select Committee to ensure a more holistic review.

He charged that the bill is a reactionary one that has suddenly attracted government’s attention because of what is happening at the Demerara Harbour Bridge.

“Instead of us being reactionary based on a situation, why not let us look at the Bill in a greater context? Because Guyana is moving in a different direction right now because of oil resources,” he said.

Mahipaul maintained that the current amendments produced is helpful in addressing only isolated aspects of the Act.

Clause 3 of the Bill substitutes for Section 24 A, which deals with the payment of land bonds, a new Section 24 A which establishes the legal framework for the minister to make an advance cash payment to an interested and authorised person.

An advance payment will only be paid after the land is acquired by the State, if requested by the authorised person and where there is satisfactory proof of title.

The advance payment would not exceed 80 percent of the purchase money or adequate compensation and where the land is the subject of a mortgage or any other similar registered encumbrance, the minister would pay such advance payment as would be required for securing the release of the interest of the mortgage or the creditor.

Further, an advance payment on account of adequate compensation in respect of land which is the subject of settlement or trust would be made to the persons entitled to give a discharge for capital money.

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