COURT CASES AND HOW IT AFFECT CHANGES IN YOUR REVENUE POLICIES: PEET DU PLESSIS HEAD REVENUE MANAGEMENT ETHEKWINI METROPOLITAN MUNICIPALITY

LEGISLATIVE FRAMEWORK . Rules of the game

LEGISLATION RELATED TO CREDIT CONTROL The Constitution Municipal Property Rates Act Municipal Financial Management Act Municipal Systems Act Magistrates Court Act Prescription Act National Credit Act

LEGISLATION RELATED TO CREDIT CONTROL……… Cont. Consumer Protection Act Insolvency Act Protection of Personal Information Act Public Administration and Justice Act Sectional Titles management Act All regulations published under legislation and Council policy and bylaws

Referee of the game ROLE OF COURTS Provide clarity on legislation and assist in the interpretation of Legislation Referee of the game

COURTS JURISDICTION Constitutional Court Court of Appeal High Courts Judgments for all divisions Court of Appeal Judgments for all Divisions of High Court and Magistrates Court High Courts Judgments Applicable to it’s own jurisdiction and Magistrates Courts Judgments are persuasive in other jurisdictions Magistrates Court To it’s jurisdiction

JUDGMENTS ……………

KEY JUDGEMENTS Rademan v Moqhaka Local Municipality [Constitutional Court CCT 41/2012 (Judgment 2013) ] Mkontwana v Nelson Mandela Municipality [Constitutional Court CCT 57/2003] B G Beck v Koponong Local Municipality [Orange Free State High Court 3772/2002] Yarona Healthcare Network (Pty) Ltd v Medshield Medical Scheme (Supreme Court of Appeal 22/09 /2017 Argent Industrial Investments Pty Ltd v Ekurhuleni Metropolitan Municipality [Gauteng Local Division Johannesburg 17808/2016 Euphorbia Pty Ltd t/a Gallagher Estates v City of Johannesburg [North Gauteng High Court A5052/2015] Jaftha v Schoeman & Others; Van Rooyen v Scholtz & Others [Constitutional Court CCT 74/2003 (Judgment 2004)] Gundwana v Steko Developments CC & Others [Constitutional Court CCT 44/2010] Canton Trading 95 Pty Ltd & Others v Buffalo City Metropolitan Municipality [Eastern Cape High Court 2727/2013 (Judgment 2014)] Leon Joseph & Others v City of Johannesburg & City Power [Constitutional Court CCT 43/2009]

KEY JUDGEMENTS…..Cont. Chantelle Jordaan & Others v City of Tshwane Metropolitan Municipality & Others [Constitutional Court CCT 283/2016 Anva Properties cc v End Street Entertainment Enterprises cc [Western Cape High Court 22109/2014] BOE Bank Ltd v City of Tshwane Metropolitan Municipality [Supreme Court of Appeal 240/2003 (Judgment 2005)] and City of Johannesburg v Harry Kaplan NO (in his capacity as Liquidator) [Supreme Court of Appeal 111/05] P A Pearson (Pty) Ltd v eThekwini Municipality [Supreme Court of Appeal 2017 (6) SA 82] Body Corporate of Croftdene Mall v eThekwini Municipality [Supreme Court of Appeal 603/2010 (Judgment 2011)] Millar & Others v NAFCOC Investment Holdings Pty Ltd [2010 (6) SA 390 SCA] Nelson Mandela Bay Metropolitan Municipality v Mr Nobumba NO & Others [Eastern Cape High Court 3460/2009] City Treasurer and Rates Collector, Newcastle Town Council v Shaikjee & Others [1983 (1) SA 506 N] C Z Mbanjwa Incorporated v Albany Auto Trimmers [Eastern Cape High Court CA 127/2008 (Judgment 2009)]

KEY ISSUES Legality Test Is the decisions made by a Municipality in terms of the Act Failing would make the decision invalid Ultra Vires Constitution is the supreme law of South Africa All public power is subject to constitutional control.

KEY AREAS OF IMPACT S 96 Obligation of the collection of Debt Rights and obligations ; Municipality and Customers s4 and s5 of MSA Billing undercharging, delays and errors Importance of collections and record keeping of data Disconnection of services Disputes s102(2)

KEY AREAS OF IMPACT……Cont Rights of landlord demanding disconnection of services Disconnections of Pre-paid electricity (Service Provider) Owner responsibility for activity on property and unpaid services Restraint Transfer of property s118 Distinction between s118(1) and s118(3) S118(3) security and insolvency

KEY AREAS OF IMPACT……Cont Allocation of receipts s102(1)(b) Deregistered Companies and Closed Corporations Bona Vacantia Applicability National Credit Act Prescription Property Taxes and fixed Charges 30 years Judgment debt 30 years Service fees on consumption 3 Years

KEY AREAS OF IMPACT……Cont Interruption of Prescription Tacit acknowledgement of debt An acknowledgement of the existence of the debt; Part payment of debt/interest; s102(1)(b) Provision of security. Trust and Trustees Trustees to be held to account Sureties

POLICY IMPACT AND IMPLICATIONS Section 226 Constitution provide Power Due Processes to be followed when policy is adopted Public Participation essential Cannot change rates tariff after public consultation without further consultation Policy definitions on categories very important Municipality has the right to determine how Exemption, Rebates and reductions will be applied Promotion of Administrative Justice Act is applicable

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