Times Of Swaziland: SOME CHURCHES AMONG OVER 3 000 OWING CITY COUNCIL E53.2M

SOME CHURCHES AMONG OVER 3 000 OWING CITY COUNCIL E53.2M
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Ntombi Mhlongo on 04/02/2024 16:06:00


MBABANE – Over 3 000 property owners could face legal action for failure to
settle outstanding rates balances amounting to E53.2 million due to the
Municipal Council of Mbabane.
This is reflected in minutes of a Council Ordinary Meeting, which was held last
Tuesday. Municipal property rates are the financial liabilities that each
immovable property owner pays to the municipality, where his/her immovable
property (land and buildings) is located. In terms of Section 32 (1) of the
Rating Act 1995, the collector of rates is required to render a return to the
local authority settling forth the names of all owners of property in default
and the amounts of rates owing by each to the local authority.  Thereafter, the
document states that, the local authority may cause legal proceedings to be
instituted for the recovery of the amounts owing and any penalties accruing
thereon. A list of the defaulters which is annexed to the minutes includes
state-owned enterprises, family trusts, private companies and individuals. While
some of the owed rates range between E1 000 and E100 000, some are over E300
000. The highest amount, according to the list, is about E2 281 868.68.
The list is yet to be made public, following that the council has approved that
the legal route be taken to recover the money. It is mentioned in the report
that the intention is to institute the legal proceedings by the council for the
recovery of outstanding rates has been preceded by rates bills, that were sent
to property owners in April 2023. “Following the issuance and sending of rates
bills were letters of final demand as per Section 27 (3) that were sent to
ratepayers, whose property rates were not paid in full by September 30, 2023,
this being the expiry of two months from when the rates became due and payable.
Certified statements were printed and sent to the ratepayers, whose property
rates were not paid in full by the end of December 2023,” reads part of the
report. It was highlighted that the deadline for paying 2023-2024 rates bill was
July 31, 2023, unless a ratepayer entered into an installment arrangement with
the council to settle over a period of time. “The council is, therefore,
mandated to commence the legal process towards the recovery of arrear rates
after due process had been followed and as such, the council’s authority to
begin the process is hereby requested,” it was mentioned.
The report reflects that the council has approved the institution of legal
proceedings for the recovery of outstanding rates balances and penalties
accruing thereon. This is not the first time that churches are found to be among
the main defaulters of rates payment. In July last year, this publication
reported that some churches owed the Municipal Council of Manzini about E1.7
million in rates. In terms of the law that governs local government, the levying
of rates on rateable properties is done once a year within the first three
months of a new financial year. They become due and payable at the expiry of
thirty (30) days from the date of issue of the rates bill (invoice). The
ratepayer may pay part or all of it before the due date. They can also approach
the council to enter into an installment arrangement effectively spreading the
payment over the remainder of the financial year to March 31. It is not enough
to only secure the installment agreement, it must also be honoured by paying the
agreed amounts on the agreed dates otherwise it counts for nothing. The issue of
unpaid rates has always been a concern for the council and ratepayers.
investigate
During an annual general meeting held at the Mountain Inn in September last
year, ratepayers urged the council to investigate how the rate payments were
made in the city especially when it came to the government. This came after the
city reported that the rates arrears had gone up to E106.4 million from E83
million in the previous year with government owing E68 million, while private
ratepayers owed E38 million. During the AGM, Mbabane Rates Payers
Association’s Patrick Bhembe stated that government had been owing rates for a
very long time with no plan on repaying. He said it was a terrible decision to
have government owe for a long time without any agreement made on how she was
planning to repay those rates, which are currently at E68.2 million.
“Government  doesn’t even get the penalty or interest like all of us private
ratepayers,” he said. He also asked the council to clarify the situation on
the outstanding rates arrears by the government. “Has the government made a
submission or agreement on how they will pay? On the private side, we know that
we stand to lose our properties but what about government,” asked Bhembe.
owing
Section 31(3) of the Rating Act of 1995, stipulates that: “If the owner of any
property fails to pay the rate or any part thereof, owing in respect of the
property, on or before the expiry of one month from the date on which such rate
becomes due, a final demand in writing shall be made by the collector of rates
and served on the owner requiring him to pay the amount stated the rein within
14 days of the service thereof.” The municipality said failure to pay would
result in legal proceedings in terms of Section 32(2), at a cost to be borne by
the ratepayer, in order to recover the rates owing. Sections 32(2) reads: The
proceedings for the recovery of rates shall comply with the following:
(a) the local authority shall file with the clerk of the court a statement
certified by the treasurer, on oath, setting forth the amount of rates payable
by the owner;
(b) a copy of such statement shall be posted by the treasurer to the owner on
the same day as the statement is filed with the clerk of such court;
(c) the statement referred to in paragraphs (a) and (b) shall contain a copy of
the provisions of this subsection and sections 29, 30 and 31; and
(d) upon receipt of such statement, the clerk of such court shall enter judgment
in the records of such court in favour of the local authority against the owner.
The ratepayers have also been reminded of the obligation to forward their
information to Council as required by Section 37 (4 – 5) of the Act, which
states that ‘the owner of any immovable property shown in the valuation roll
shall notify the local authority of his postal address within two weeks of
acquiring such property and, hereafter, within two weeks of any change of his
postal address’. An owner who fails to comply with this shall be found guilty
of an offence.