Court declares Lesedi property valuation roll unlawful

The legal row over property rate hikes in Gauteng’s Lesedi local municipality has taken a dramatic turn, with a court declaring the municipality’s 2024-29 general valuation roll unlawful and invalid.

In a judgment handed down on Tuesday, the High Court in Johannesburg found that the municipality failed to comply with mandatory public notice requirements under the Municipal Property Rates Act (MPRA) before implementing the new roll.

This is the same roll that triggered contentious increases which residents – the applicants in the lawsuit – said far exceeded the advertised 4.9% hike for the 2024-25 financial year.

Six property owners secure ruling

The case was brought by six property owners, including Property Park and Vergil, after they received significantly higher municipal bills.

They argued that the municipality failed to legally publish consecutive notices inviting inspection and objections, as required under Section 49 of the MPRA.

The court agreed, noting that the municipality conceded it had not published the required second consecutive newspaper notice.

ALSO READ: Tshwane ‘wilfully ignoring’ its own property rates policy – Rates Watch

While the municipality argued there had been “substantial compliance” through later notices, e-mails and website publication, the court found the defects were material and undermined property owners’ right to participate in the objection process.

According to the ruling, the valuation roll never validly commenced and was therefore declared unlawful under the constitutional principle of legality.

To avoid financial disruption, however, the court suspended the declaration of invalidity for six months, allowing the municipality time to rectify the procedural defects.

Court suspended declaration of invalidity for six months

The order applies prospectively, but the six successful applicants are entitled to retrospective relief for the 2024-25 financial year.

The municipality has been ordered to recalculate their rates, credit any overpayments and issue adjusted statements within 60 days.

It is also temporarily barred from pursuing debt collection against them pending compliance.

ALSO READ: Ratepayers welcome Durban High Court judgment

The court further rejected the municipality’s argument that the matter had become moot because the 2024-25 financial year had ended, noting that the valuation roll remains in force until 2029 and continues to affect ratepayers.

Bouwe Wiersma, an interested party and Lesedi resident, said this must be a lesson to the administration that the rule of law still applies.

He pointed out what he termed a lack of proper risk oversight in the municipality, alleging that an acting risk manager was appointed by the municipal manager’s office that allowed the matter to escalate to court, instead of addressing what he called statutory non-compliance.

Lesedi mayor involved MEC for cooperative governance

Wiersma said Lesedi mayor Mluleki Nkosi involved Gauteng MEC for cooperative governance Jacob Mamabolo in seeking condonation for the procedural defects and questioned whether accountability should extend to the mayor, municipal manager, chief financial officer and the MEC.

While the order grants direct retrospective relief only to the named applicants, the declaration of invalidity places pressure on the municipality to regularise the process for all ratepayers.

The Lesedi municipality has not yet responded to the ruling.

NOW READ: Zero tolerance for outstanding accounts