Ratepayers associations embark on a rates boycott over tariff hikes

Westville Ratepayers Association chairman Asad Gaffar and National Taxpayers Union chairperson Jaap Kelder, during the Westville Ratepayers Association public meeting that was held at the Westville Civic Centre. Picture: File

Westville Ratepayers Association chairman Asad Gaffar and National Taxpayers Union chairperson Jaap Kelder, during the Westville Ratepayers Association public meeting that was held at the Westville Civic Centre. Picture: File

Published Aug 8, 2023

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Durban — The Westville Ratepayers Association (WRA) said they have embarked on a rates boycott against eThekwini Municipality together with other allied residents’ organisations in the City starting this month.

The ratepayers have declared the City’s 2023/24 budget unlawful and requested that it reverts to the previous tariff application, prior to adjusting.

WRA chairperson Asad Gaffar said the money due to be paid to the municipality will be placed in an account held in trust pending the following:

  • eThekwini management convene an urgent meeting with the WRA and our affiliates to resolve the dispute.
  • The tariff increase for 2023/24 be set aside until a resolution is reached that favours the City and ratepayers.
  • That a system be put in place to avoid any future loss of revenue.
  • That a board be put in place to oversee the effective running of the City.
  • That this matter be resolved in a court of law.

The association said the City disregarded ratepayers’ concerns and adopted the 2023/24 budget, promulgated as required by law when the budget tariff of 18.49% for electricity was adopted.

It also said that in drafting a budget, the municipality applied revenue collection from all revenue streams to properly administer the running of the city.

Gaffar said: “Despite the fact that the municipality was illegally applying an electricity tariff, and in order to run roughshod over ratepayers, and meet a deadline, the municipality went ahead without proper consultation or necessary approvals. Were any notices sent out to the public advising of this adjustment?”

Previous requests to engage the municipality have been ignored despite a dispute having been declared and ratepayers advising they will embark on a full utilities boycott as an act of protest, he said.

Phoenix Civic Movement leader Vivian Pillay said: “Service delivery in eThekwini is at an absolutely dismal level resulting in major water and electricity outages. The flowing of sewage into our rivers, streams and ocean are damaging the environment.”

Gaffar said the WRA and its affiliates will remain in dispute with the City until communities have been restored with due care and dignity.

“Huge amounts of funds are leaving the administration frivolously whereas these should be used for the effective running of the city.”

The Westville Ratepayers Association and its partners have vowed to embark on the municipal rates boycott as of the month of August, until the City of eThekwini listens to their demands. Picture: Supplied

eThekwini Municipality spokesperson Gugu Sisilana said it was unlawful to withhold the payment of property rates and services for any reason.

“We urge residents to continue paying their municipal bills. Where there are genuine financial difficulties with payment, residents can visit any Sizakala Centre to make payment arrangements, in terms of the policy, that are more affordable.

“The WRA did attend the ratepayers’ budget hearing on May 24. A memorandum was handed to the City and a comprehensive response was provided to the WRA.

“This matter is now a legal matter as the City has received communication from attorneys representing WRA and will therefore not comment further. But the City will continue to engage residents on service delivery matters.

“Each household is urged to make informed decisions instead of engaging in unlawful acts.

There are risks to withholding municipal payments and paying monies into trust accounts/other structures:

  • The municipality will continue to implement credit control measures as allowed for in law. This includes levying of interest on overdue accounts and disconnection.
  • Should a resident decide to sell a property there will be challenges with issuing a rates clearance certificate.
  • Should the property owner die a rates boycott could present challenges in winding up an estate.
  • There is always a risk that the money could be mismanaged in the ‘common’ account.

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