South Africa Case Law

Afriforum NPC v Ngwathe Local Municipality and 14 Others (2264/2024)

Afriforum NPC v Ngwathe Local Municipality and 14 Others (2264/2024) [2025] ZAFSHC 184 (20 June 2025)

Court

Free State High Court, Bloemfontein

Case number

2264/2024

Judge

Daffue

The court found that Ngwathe Local Municipality is in persistent breach of its constitutional and statutory obligations, including failure to provide basic services, maintain a safe environment, and manage its finances. The evidence of contaminated water, sewage spills, financial insolvency, and poor governance was overwhelming and largely uncontested. The Provincial respondents failed to take mandatory steps under section 139 of the Constitution and the MFMA, despite clear jurisdictional facts requiring intervention. The court held that exceptional circumstances justified dissolution of the…

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• Municipal Dysfunction
• Mandatory Provincial Intervention
• Structural Interdict
• Service Delivery Failure
• Local Government Finance
• Declaratory Relief

Ekapa Minerals (Pty) Ltd and Another v Sol Plaatje Local Municipality and Others (CCT 119/23)

Ekapa Minerals (Pty) Ltd and Another v Sol Plaatje Local Municipality and Others (CCT 119/23) [2025] ZACC 1; 2025 (5) BCLR 505 (CC) (24 March 2025)

Court

Constitutional Court

Case number

CCT 119/23

Judges

Zondo, Maya, Bilchitz, Gamble, Madlanga, Mathopo, Mhlantla, Tshiqi

The Constitutional Court found that the High Court erred by limiting the retrospective effect of its order of invalidity to prospective operation only, thereby failing to properly balance the interests of the applicants and the municipality. The High Court focused solely on the municipality's fiscal interests and did not consider the substantial prejudice to Ekapa, which had paid rates at a lower ratio and faced unlawful charges. The evidence did not support the municipality's claims of disruptive financial consequences, and the delay in challenging the rates was not as extensive as the High…

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• Municipal Property Rates Act
• Principle Of Legality
• Just And Equitable Relief
• Unlawful Differentiation
• Retrospective Orders
• Local Government Finance

Amathole District Municipality v Betram (Pty) Ltd and Another (CA151/2023)

Amathole District Municipality v Betram (Pty) Ltd and Another (CA151/2023) [2024] ZAECMKHC 89 (20 August 2024)

Court

Eastern Cape High Court, Makhanda

Case number

CA151/2023

Judges

M S Rugunanan, J W Eksteen, A Bodlani

The municipality failed to provide objective evidence that its acting manager, Mr Mosala, lacked authority to settle the litigation. The council resolution to defend was not disclosed, and no primary facts were presented to support the assertion of ultra vires conduct. The legal representatives had ostensible authority, and the settlement was reached in the course of litigation with full participation of the municipal manager. There was no evidence of impropriety or unlawfulness in the settlement process. The absence of an approved budget did not render the agreement invalid, as the settlemen…

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• Compromise Agreements
• Municipal Authority
• Ultra Vires
• Local Government Finance
• Rescission Of Judgment
• Ostensible Authority

Twizza (Proprietary) Limited and Others v Enoch Mgijima Local Municipality and Others (3413/2018)

Twizza (Proprietary) Limited and Others v Enoch Mgijima Local Municipality and Others (3413/2018) [2020] ZAECGHC 144 (8 December 2020)

Court

Eastern Cape High Court, Grahamstown

Case number

3413/2018

Judge

NG Beshe

The High Court held the municipality and officials in contempt for wilful non-compliance with a court-ordered payment agreement to Eskom.

• Municipal Debt Enforcement
• Contempt Of Court
• Wilful Non Compliance
• Payment Agreement
• Local Government Finance
• Contempt-of-court

Posthumous N.O and Others v Member of the Executive Council for Cooperative Governance, Human Settlements and Traditional Affairs and Others (1586/2020)

Posthumous N.O and Others v Member of the Executive Council for Cooperative Governance, Human Settlements and Traditional Affairs and Others (1586/2020) [2020] ZANCHC 78 (9 November 2020)

Court

Northern Cape High Court, Kimberley

Case number

1586/2020

Judges

Williams, Mofokeng

The court held that the Provincial Executive Council's decision to dissolve the Renosterberg Local Municipality was lawful and complied with the requirements of section 139(5)(b) of the Constitution, which mandates dissolution in cases of financial crisis and does not require a 14-day waiting period. The mistaken reference to the waiting period in the MEC's notification to the NCOP did not override the legislative provisions. The applicants' reliance on procedural grounds was misplaced, as the jurisdictional facts for both discretionary and mandatory interventions were present, and the mandat…

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• Section 139 Intervention
• Municipal Dissolution
• Procedural Fairness
• Intergovernmental Relations Framework Act
• Local Government Finance
• Judicial Review

Kosmos Ridge Homeowners' Association v Madibeng Local Municipality and Others (30085/09)

Kosmos Ridge Homeowners' Association v Madibeng Local Municipality and Others (30085/09) [2020] ZAGPPHC 565; 2022 (2) SA 207 (GP) (1 October 2020)

Court

North Gauteng High Court, Pretoria

Case number

30085/09

Judge

Fabricius

The court found that the relief sought by the applicant, namely an order compelling the Minister of Finance to ring-fence funds for the construction of a sewerage plant, is incompetent in law. The constitutional and statutory framework establishes the autonomy of municipalities and restricts intervention by national government to specific circumstances, notably section 139 of the Constitution, which was not applicable in this case. The powers of the National Treasury under the MFMA are limited to monitoring and, in cases of breach, stopping funds, not reallocating or ring-fencing them for par…

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• Municipal Autonomy
• Contempt Of Court
• Division Of Revenue Act
• Mandamus
• Constitutional Separation Of Powers
• Local Government Finance

Nelson Mandela Bay Municipality v Amber Mountain Investments 3 (Pty) Ltd (576/2016)

Nelson Mandela Bay Municipality v Amber Mountain Investments 3 (Pty) Ltd (576/2016) [2017] ZASCA 36; 2017 (4) SA 272 (SCA) (29 March 2017)

Court

Supreme Court of Appeal

Case number

576/2016

Judges

Cachalia, Theron, Dambuza, Mocumie, Molemela

The Supreme Court of Appeal held that the relevant statutory provisions, when read together, do not entitle a municipality to require payment of property rates for the entire financial year as a condition for issuing a rates clearance certificate. The obligation to pay rates arises within the financial year, and only debts that have become due in the two years preceding the application for the certificate may be demanded. The municipality's policy requiring payment of future rates is ultra vires and invalid. The respondent was only obliged to pay rates up to the date of transfer, and the muni…

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• Municipal Property Rates
• Rates Clearance Certificate
• Statutory Interpretation
• Ultra Vires Policy
• Local Government Finance
• Property Transfer

Kalil N.O. and Others v Mangaung Metropolitan Municipality and Others (210/2014)

Kalil N.O. and Others v Mangaung Metropolitan Municipality and Others (210/2014) [2014] ZASCA 90; [2014] 3 All SA 291 (SCA); 2014 (5) SA 123 (SCA) (4 June 2014)

Court

Supreme Court of Appeal

Case number

210/2014

Judges

Mpati, Brand, Bosielo, Leach, Wallis

The Supreme Court of Appeal held that the Mangaung Metropolitan Municipality failed to ensure proper public participation in the budget process as required by statute. However, the regulations under the Municipal Property Rates Act do not prescribe a maximum ratio between rates on residential and business properties, nor do they prohibit levying higher rates on business properties. The historical and statutory context supports the practice of higher rates for commercial properties. The appellants' reliance on a contrary interpretation was misplaced. The appeal was dismissed except for the cos…

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• Municipal Rates
• Public Participation
• Local Government Finance
• Legality Principle
• Rate Ratio Regulation
• Constitutional Obligations

Rates Action Group v City of Cape Town (16/2005)

Rates Action Group v City of Cape Town (16/2005) [2005] ZASCA 111; [2007] 1 All SA 233 (SCA); 2006 (1) SA 496 (SCA); 68 SATC 1 (25 November 2005)

Court

Supreme Court of Appeal

Case number

16/2005

Judges

Howie, Streicher, Lewis, Jafta, Nkabinde

The Supreme Court of Appeal held that the Local Government: Municipal Systems Act 32 of 2000 does not preclude the levying of a rate as a charge for municipal services such as sewerage and refuse removal. The Act requires a tariff policy and by-laws for the levying of fees for municipal services, but does not prohibit the use of property value as a basis for such charges. The relevant provisions of the Local Government Transition Act 209 of 1993 were not impliedly repealed by the Systems Act and continued to operate until expressly repealed by subsequent legislation. The appellant's argument…

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• Municipal Rates
• Tariff Policy
• Local Government Finance
• Service Charges