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

2. LEGISLATIVE FRAMEWORK.
Rules of the game

3. 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

4. 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

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

6. 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

7. JUDGMENTS ……………

8. 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 /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]

9. 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)]

10. 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.

11. 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)

12. 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

13. 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

14. 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

15. 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

16. THANK YOU