DA calls on KZN government to announce rates holiday for smaller businesses affected during recent riots

Issued by Chris Pappas, MPL – DA KZN Spokesperson on CoGTA
26 Jul 2021 in Press Statements

The Democratic Alliance (DA) in KwaZulu-Natal (KZN) has called on the provincial government to urgently announce its plans to assist municipalities hit by ANC riots two weeks ago. In particular, we want a full outline of steps that will be taken to ensure that businesses whose income generating mechanisms are in ruins, will not be forced to pay rates and municipal tariffs.

The move comes after many municipalities in the province saw large parts of their business sectors completely destroyed while others suffered huge damage and sustained massive losses. This is particularly evident in small towns where, in some cases, there is nothing left.

Of particular concern to the DA are the family-owned businesses, informal traders and SMMEs who have been very hard hit. The reality is that many will not be able to pay rates or municipal tariffs this month and for many months to come as they try to recover from the destruction driven by senior ANC leaders.

It is for this reason that the DA is calling on the provincial government to engage municipalities about rates holidays for affected businesses.

In response to any losses of income to municipalities, we have written to the province’s Department of Co-operative Governance and Traditional Affairs (CoGTA) and the Provincial Treasury to request that funds are made available to assist those municipalities where such rates deferrals are to be implemented in the form of a conditional grant or interest-free loan.

Billions of Rands have been stolen and misused within KZN’s ANC and IFP-led local municipalities, leaving them with no cash reserves or cash on hand to respond during times of disaster such as we are faced with now. The reality is that it will take provincial and national government to come to the rescue of KZN’s cities, towns and villages. The question is: do they have the will or heart to assist?

ANC cadres in municipalities and within provincial government were silent during the recent looting and violence. Today, individuals such as eThekwini Mayor, Mxolisi Kaunda, still refuse to acknowledge their part in the destruction. The very least that this uncaring government could do is provide some reprieve from rates and other municipal tariffs until businesses have managed to get back on their feet.

Our economy was already on its knees following the dismal Covid-19 response and poor policy direction of the ANC government. What is now urgently needed is to ensure that what is left of small town economies is saved to protect against any further decline, loss and suffering. There can be no other option.