Fury at bid to slash government rates
Ratepayers’ associations call move ridiculous
THE proposal by the Department of Public Works and Infrastructure for eThekwini Municipality to reduce the rates charged on government properties has caused a stir among residents, with ratepayers’ associations describing it as “ridiculous”.
Thousands of Durban ratepayers have recently lodged objections to the city’s valuations of their homes, saying this would lead to an increase in their rates. Speaking to The Mercury yesterday, ratepayer organisations reacted with shock to the department’s proposal, saying such a move could lead to residents being charged more to compensate for such a reduction.
The department, which is the custodian of government property, said recently that it was looking to negotiate what it was being charged by the municipality for rates on government properties.
While delivering his budget speech at the provincial legislature recently, Public Works and Infrastructure MEC Jomo Sibiya highlighted priorities his department would spearhead this term, including engaging with the municipality on the rates being charged.
“Throughout this term of office, we remain focused on achieving the following priorities (including) negotiation and reduction of property rates on the state-owned properties in eThekwini Metro,” he said.
Other priorities include strengthening the capacity of Public Works as the only implementer of choice for infrastructure development in KwaZuluNatal, reducing rentals through the construction of state-owned infrastructure and maximising use of existing state facilities and improving the maintenance of state buildings.
The department’s proposals come after revelations that Public Works was among the departments contributing to the ballooning debt owed to the municipality. The government debt is currently standing at about R1 billion, with public works and infrastructure contributing about R125 million to this. The city’s total debt book is standing at R17bn.
Sibiya said the issue of the payment of rates was serious, adding that there were many instances where municipalities had complained about non-payments. He said he would be engaging with different mayors on the issue.
He said on November 8, 2021, the Department of Public Works held its Mid-Term Performance Review and the issue of payment of property rates to municipalities came under discussion, with head of department Siboniso Majola mandated to implement a turnaround strategy.
“In the 2020/2021 financial year the department spent the entire budget of R828.5m on the payment of property rates, including the additional budget of R165m as received from provincial treasury to cater for the shortfall in available funds.
“In relation to a turn-around strategy on the payment of property rates, collectively, with provincial government departments, we have agreed to ensure that certain municipalities do not run into difficulties over unpaid property rates and utility bills by Public Works.”
The department added that it had paid millions that were due to the Msunduzi Municipality.
“We also reiterate our appreciation of the 50% discount for property rates on schools by eThekwini Municipality. As indicated, this resulted in a saving of R123m on property rates budget for 2021/2022 financial year, which helped the department in offsetting the deficit with other municipalities,” he said.
However, ratepayers’ associations in the city are not amused by the rates reduction proposal, saying it was “ridiculous” that government could ask for it.
Navin Dookran of the Clare Estate Ratepayers’ Association said: “We as residents should not even be paying anything to the municipality, we should be holding this in a trust because of the bad service delivery we receive. Public Works should not be asking for a rates reduction, they are the government and should be paying more.”
Asad Gaffar of the Westville Ratepayers’ Association said such a call was “ridiculous” and could lead to residents being charged more for services to compensate for such a reduction to the government.
“The municipality still needs money to operate, this means it would have to find the money elsewhere and the residents could end up being charged more for services, this is ridiculous,” he said.
Municipal spokesperson Msawakhe Mayisela said if Public Works wanted a reduction on their rates, they would have to file objections to the valuations like all others ratepayers.
“We are not aware of such plans, but we can state that there is no other way that the Department of Public Works can ask for the reduction of property rates except through the objection process of the Real Estates section that all property owners follow.”