Overburdened ratepayers turn to Mabuyane for help

Buffalo City ratepayers have turned to Eastern Cape finance MEC Oscar Mabuyane for a ruling in their feud with the metro over its rates increase.

Since August, when BCM increased rates by up to 250%, it has refused to reveal to South African Property Owners Association (Sapoa) how it calculated the increase, said Neil Gopal, Sapoa’s chief executive.

Mabuyane’s chief of staff, Baphelele Mhlaba, confirmed receiving Sapoa’s request for the MEC to resolve the matter.

Many of the increases were way above the consumer price index, averaging 35%, making them illegal in terms of the Rates Act, said Gopal, adding that increases above inflation should flow through over five years to avoid massive hikes.

BCM spokesperson Samkelo Ngwenya declined to comment.

By year-end BCM will have invoiced an additional maximum R240m over the previous period in 2017, Gopal said, adding the increase was in addition to another one earlier this year, which came about when properties were revalued. This has added R91m a month to rates. He emphasised he did not advocate that property owners withhold either their rates or the increased amounts until the issue was resolved.

However, talk of service cuts was unfounded. “BCM cannot cut off services when rates are under dispute or appeal.”