Durban – a colonial-apartheid city with picture-perfect landscapes and beaches, home to 3.77 million culturally-diverse people amidst plans for its 200-year celebration in 2024 – is at war with its citizens.
Under the democratic rule of the African National Congress (ANC) since 1994, the mayoral and council leadership of the R60-billion budgeted eThekwini Municipality is at loggerheads with a powerful coalition of ratepayer bodies that are threatening a city-wide rates and utility billings boycott – up to costly high court action – if the municipality does not meet the boycotting blocs halfway.
The simmering row reached a head-on clash and turned ugly publicly when ratepayer representatives stormed out of a meeting hosted by the mayor, Mxolisi Kaunda, who launched the first of a series of roadshow meetings at the council-owned civic centre in Westville to quell the growing anger from community and civic movements to the exorbitant municipal cost of rates, electricity, water, sanitation and refuse removal services.
Customers are frustrated over the steep annual hike each year – plus a dubious billing system – and the decline of service delivery as the ANC and its multiparty coalitions are engaged in bitter verbal wars and control for power and top seats at Council meetings and caucuses.
The eThekweni Ratepayers’ and Residents’ Association (ERRA) – a newly-formed coalition of community-based organisations born out of growing service delivery woes, power and water outages, inaccurately estimated electricity and water meter readings and widespread fraud and corruption with the tender and procurement system involving municipal HODs, employees and sub-contractors – is tackling the municipality head-on as it sets out to whip up more support and solidarity among established ratepayer and resident bodies across Durban’s 100km radius of inner-city, towns, gated villages and housing estates.
Tempers flared at the first meeting of 100 people and the Mayor, as the two parties engaged each other and faced off in a bitter war of words. The temperature rose and emotions became charged when the mayor’s response to the imminent rates boycott – the battle cry of the Westville Ratepayers’ Association (WRA) – was interpreted as a “lecture” on the illegality of withholding utility bill payments.
The WRA declared a property rates and utility bill revolt and non-payment strategy on 30 June this year after consulting legal advisors and accounting firms. On the eve of the city’s annualised increase for municipal services of up to 21%, the so-called rates boycott had gained momentum, attracting 100 residents and representatives from 25 ratepayer associations across the city – including the highway towns, Chatsworth, Phoenix, Reservoir Hills, Springfield and other areas.
The Mayor stood his ground, explaining that “it is illegal to withhold payments for rates and services in terms of the Municipal Property Rates Act of 2004 and the Municipal Systems Act” before issuing a warning that the municipality would implement its credit control policy – including disconnections – in response to the revolting ratepayers.
Asad Gaffar, WRA chairperson, described his experience as “disappointing” as the meeting was not “consultative” but “autocratic”.
He said: “The Act says it is illegal to withhold rates under ‘normal circumstances’ if the city is providing you with all the services, but the city was not providing all services in terms of the Act. We will hold our position. We will withhold our rates and if the city is not happy, let them take us to court or let us sit down and really talk about the issues that are the problem.
“Let’s see if we can meet halfway but if we can’t meet halfway, we need to walk out. We declare the 2023/24 budgets illegal. We can go to court tomorrow and prove it. The process the city used in terms of public participation; they gave us on the agenda. How do we engage the city in 10 minutes?”
The Mayor, flanked by his chief operating officer, Mavuso Tshabalala, and the Speaker Thabani Nyawose – who had met the ERRA delegation and collected their memorandum previously on the steps of City Hall – acknowledged the city’s customers.
He said: “We recognise the important role ratepayers play in the provision of quality services. In fact, without you, the municipality will not be able to deliver on its constitutional mandate. We are deeply concerned about the public statements that have been attributed to you of mobilising residents to boycott the payment of rates.
“While we acknowledge that sometimes our residents may get frustrated about the service delivery lapses, we want to caution that the law is clear that non-payment for municipal services is unlawful. We can only fix these service delivery challenges if we all work together.”
The Mayor told the meeting that his municipality had consulted extensively with key stakeholders before the price increases were implemented and the National Energy Regulator of South Africa pegged the increase at 15.1%.
“We understand your frustrations, however, withholding the payment of rates will only exacerbate the situation. We appeal to you to reconsider this decision and allow these engagements to continue until we find a lasting solution. We have also started a process of streamlining our revenue collection system so that residents are billed correctly for the services they have used. We encourage residents to continue paying their accounts as non-payment will accrue interest.
“The municipality will continue implementing credit control measures in line with the relevant policies and municipal bylaws where accounts are in arrears. This includes disconnections which attract a reconnection fee … the longer that payments are delayed, the greater the amount to be paid and services will possibly be disrupted in terms of the policy.”
“The city’s credit control policy stipulates that should any dispute arise with respect to the amount owing, the debtor must continue to make regular payments based on the average charges for the preceding three months prior to the dispute, plus interest where applicable. Therefore, it is unacceptable and unlawful not to pay valid municipal accounts.”
The Mayor has advised customers facing dire financial difficulties to go to the Sizakala Centre to make arrangements for affordable payments.
The coalition is demanding the following: Setting aside of rates increases on properties pending valuation appeals filed by ratepayers; review of all credit agreements and a moratorium for all interest on overdue accounts; simplified billing; regular, accurate meter reading and stop to estimated readings; write off arrears rates owed by ratepayers over the age of 65; establish an oversight board of city officials and ratepayers within 14 days.
In the meantime, this stand-off has the potential to escalate the new impasse on a collision course for the Durban High Court to fight it out legally if the door to dialogue and negotiations is not opened soon.
