SOME CHURCHES AMONG OVER 3 000 OWING CITY COUNCIL E53.2M

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.

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