eThekwini's ANC mayor, Mxolisi Kaunda. File photo by Darren Stewart/Gallo Images
Durban ratepayers have threatened to file a court application to have the eThekwini metro placed under administration if it does not meet their demands, but the city has warned that a legal battle will not make their lives easier.
The stand-off between eThekwini mayor Mxolisi Kaunda and the eThekwini Ratepayers Movement took place on Thursday night at an emotionally charged meeting in the suburb, which saw tempers flaring after Kaunda lectured residents on the illegality of withholding their utility bill payments.
Ratepayers stormed out of the meeting, accusing the city of running an “autocracy” and not being prepared to consult the public.
A group of about 100 residents, including representatives from 25 ratepayer associations across the city, from Chatsworth to Springfield Park, gathered at the Westville Civic Centre for the public meeting after the Westville Ratepayers Association declared a property rates and utility bill revolt on 30 June. eThekwini chief operating officer Mavuso Tshabalala and speaker Thabani Nyawose accompanied the mayor at the meeting.
Kaunda told residents that it is illegal to withhold payments for rates and services in terms of the Municipal Property Rates Act of 2004 and the Municipal Systems Act, warning that the city would implement its credit control policy to deal with revolting ratepayers.
“We recognise the important role ratepayers play in the provision of quality services. In fact, without you, the municipality will not be able to deliver on its constitutional mandate,” Kaunda said. “We are deeply concerned about the public statements that have been attributed to you of mobilising residents to boycott the payment of rates.
“While we acknowledge that sometimes our residents may get frustrated about the service delivery lapses, we want to caution that the law is clear that non-payment for municipal services is unlawful. We can only fix these service delivery challenges if we all work together.”
Kaunda said the city had embarked on “extensive consultation with all key stakeholders” before implementing price hikes.
“Initially, the municipality proposed an electricity tariff increase of 21.91% and after listening to your complaints we tabled a revised figure of 18.49%.”
He said the budgeted increase was “conditional” on the approval of the National Energy Regulator of South Africa (Nersa). The regulator approved an increase of 15.1% for municipalities, which city spokesperson Gugu Sisilana later explained meant the city’s budgeted, conditional tariff hike increase would drop to 15.1%
“We understand your frustrations, however, withholding the payment of rates will only exacerbate the situation,” Kaunda said.
“We appeal to you to reconsider this decision and allow these engagements to continue until we find a lasting solution. We have also started a process of streamlining our revenue collection system so that residents are billed correctly for the services they have used.
“We encourage residents to continue paying their accounts as non-payment will attract interest. The municipality will continue implementing credit control measures in line with the relevant policies and municipal by-laws where accounts are in arrears. This includes disconnections which attract a reconnection fee … the longer that payments are delayed, the greater the amount to be paid and services will possibly be disrupted in terms of the policy,” he said.
He added that the city’s credit control policy stipulates that “should any dispute arise with respect to the amount owing, the debtor must continue to make regular payments based on the average charges for the preceding three (3) months prior to the dispute, plus interest where applicable”.
“Therefore, it is unacceptable and unlawful not to pay valid municipal accounts,” Kaunda said.
He also cited the constitutional court judgment in the Liebenberg v Bergrivier Municipality matter (2013).
Part of paragraph 79 of the judgment reads: “Local government is an important tier of public administration as any. It has to continue functioning for the common good; it, however, cannot do so efficiently and effectively if every person who has a grievance about the conduct of a public official or a governmental structure were to take the law into his or her own hands or resort to self-help by withholding payment for services rendered … It is not for the disgruntled individual to decide what the appropriate relief should be and to combine with others or take it upon himself or herself to punish the government structure by withholding payment which is due.”
He said residents facing financial difficulties should visit a Sizakala Centre to make affordable payment arrangements.
The Westville Ratepayers Association’s chairperson, Asad Gaffar, said he was “disappointed” by the mayor’s meeting, which was not “consultative” but “autocratic”.
He said residents had declared the municipality’s 2023-24 budget “illegal” because of a lack of public participation and questioned how the city could ask property owners to pay higher rates and tariffs when it had lost R50 billion over the past five years, according to the auditor general’s reports for the period.
“I am really disappointed because we came here with the sole intention of finding each other and how do we find each other if the city is standing here, the mayor to be specific, in the podium saying ‘if you do this it is illegal in terms this Act’?
“The Act says it is illegal to withhold rates under ‘normal circumstances’ if the city is providing you with all the services, but the city was not providing all services in terms of the Act.
“We will hold our position. We will withhold our rates and if the city is not happy, let them take us to court or let us sit down and really talk about the issues that are the problem. Let’s see if we can meet halfway but if we can’t meet halfway we need to walk out,” Gaffar said.
“We declare the 2023-24 budget illegal. We can go to court tomorrow and prove it. The process the city used in terms of public participation; it is a record of 10 minutes they gave us on the agenda and how do we engage the city in 10 minutes? There was no engagement, the city doesn’t listen to us.”
He said the city did not realise how many people are still facing financial difficulties since the Covid-19 lockdowns.
“Since we started this campaign we have been getting calls from poor people in townships. They walk into the [municipal] offices and they get turned away. This fight is not for the middle class but for every person in the city, especially the poor. We have requested the city to engage us, we want to sit in the boardroom and thrash out the issues. This is not public participation, this is show and tell.”
“We want a renegotiation of the 2023-24 tariffs. We even put in an offer to put together an alternative budget for the city, but this was refused,” Gaffar said.
He said the Municipal Systems Act gave residents a right to be a part of the budget process.
“We want an undertaking from the city in terms of action regarding misappropriation and irregular expenditure … you want us to pay more but you are not protecting the money you are collecting.”
Gaffar said the city’s municipal bills were confusing and impossible for consumers to understand and, in terms of legislation, meters should be read regularly. But the city was providing three month estimates.
Before walking out of the meeting in protest over the city’s refusal to discuss ratepayers concerns, Gaffar handed Kaunda a memorandum from the association in which it agreed to suspend the rates protest movement if the city meets 11 demands.
These included, that the 2023-24 tariff be set aside and backdated to 1 July 2023; the renegotiation of the 2023-24 tariff increase to make it affordable for everyone; undertake a comprehensive action plan to deal with misappropriation and irregular expenditure and an immediate end to disconnections.
Other demands included:
• The setting aside of rates increases on properties where residents have filed valuation appeals;
• A review of all credit agreements and a moratorium on all interest on overdue accounts;
•A simplified bill;
•Regular accurate meter reading; estimated readings must stop;
•The writing off of arrears rates owed by people over the age of 65; and
• The establishment of an oversight board comprising ratepayers and city officials within 14 days.
When Kaunda and his entourage declared the meeting closed, Gaffar and ratepayers, who still wanted to deliberate on the issues raised, walked out in frustration.
“We are moving from a democracy to an autocracy,” Gaffar said. “It is unacceptable for you to close the meeting. If you are not prepared to engage us we will meet you in court,”
Speaking to journalists after the meeting, Gaffar said ratepayers would go to court to have the city placed under administration if necessary.