The Democratic Alliance (DA) in eThekwini has formally called for a report from the Municipality’s Legal and Compliance Unit to the Finance Committee on the status of the High Court application concerning the levying of rates on land owned by the Ingonyama Trust Board (ITB).
This request was made during the meeting of the Municipal Public Accounts Committee (MPAC) held on 06 May 2025.
At a prior MPAC meeting on 13 March 2025, when the issue of outstanding rates claimed from the ITB was raised, it was revealed that the ITB had taken the view that responsibility for the rates should fall either on the Traditional Councils occupying the land or the Department of Land Affairs. The Department had, in other municipalities, paid rates on such land and was thus expected to do the same in eThekwini. It was also reported that the Municipality had approached the High Court to obtain a declaratory order to determine which of these parties, the ITB, the Department of Land Affairs, or the Traditional Councils, should be liable for these rates.
The DA has now requested that the Legal and Compliance Unit submit a full report to the Finance Committee, detailing the positions and arguments of all parties involved in the litigation.
It is critical to note that eThekwini Municipality currently bears the costs of infrastructure development and maintenance in these areas, this includes roads, water networks, and electricity supply, despite receiving no rates revenue from the ITB properties that benefit from these services.
The DA remains concerned that the Municipality’s rates base is not broad enough to support the equitable delivery of services across the metro. A large proportion of the municipality consists of rural and peri-urban areas, which places strain on municipal resources.
More than five years ago, the Municipality resolved to introduce a flat monthly rate of R100.00 on properties in these rural and peri-urban zones. However, the implementation of this decision has continually stalled due to administrative and logistical difficulties.
In the interests of transparency and fairness to the ratepayers who do contribute to the municipal fiscus, the DA calls on the Municipality to clarify its position and demonstrate genuine intent to integrate ITB land into the formal rates base.