04 Aug 2022

Members of Parliament have unanimously passed the Agricultural Charges (Repeal) Bill of 2022, which is intended to repeal the Agricultural Charges Act.

Presenting the bill for the second reading on Wednesday, Minister of Finance, Ms Peggy Serame said there was need to repeal the Agricultural Charges Act since the security interest in movable property were provided for in the newly enacted Movable Property (Security Interests) Act.

“The Movable Property (Security Interests) Act of 2022 synchronises secure transaction laws in the country, which include the Agricultural Charges Act Cap 35:01. 

This means that the provisions of the Agricultural Charges Act relating to the security interest in movable property has been catered for under the new Movable Property (Security Interests) Act, 2022), hence the need to repeal the Agricultural Charges Act,” she said.

 She noted that the Movable Property (Security Interests) Act required that an online notice-based collateral registry be established for all secured creditors to register notice or amendment notice on the secured debt.

She said the three-clause bill provided for the short title and commencement, repeal of the Agricultural Charges Act as well as the service and transitional provisions.

“To expand on clause 3, it is important to emphasise that notwithstanding the effect of the repeal, any subsidiary legislation made under the repealed act shall continue to be in force and effect as it is under the provisions of the Movable Property (Security Interests) Act to the extent that it is not inconsistent with such provisions. 

Any certificate, authorisation or any other documentation issued under the repealed act shall remain valid as it is made under the Movable Property (Security Interests) Act, until such a certificate, authorisation or documentation ceases to be of any force either by way of cancellation, substitution or otherwise,” she said.

Ms Serame further said all decisions that were made under the repealed act would be regarded as made under the Movable Property (Security Interests) Act. 

Additionally, she noted that all legal proceedings which were pending before the repealed act would also continue.

Debating the bill, Kgalagadi North MP, Ms Talita Monnakgotla supported the bill, saying it resonated with the Movable Property (Security Interests) Act. She said the bill would address some of the challenges faced by farmers and their stakeholders. 

She underscored the need to sensitise upcoming farmers about the Movable Property (Security Interests) Act in order for them to adequately utilise services offered by the National Development Bank (NDB) and Citizen Entrepreneurial Development Agency (CEDA).

Mahalapye West MP, Mr David Tshere also supported the bill. He applauded the ministry for protecting farmers through provisions to continue with agreements which were done under the repealed act. Ends