<\/p>\n
The City of Tshwane has confirmed that it has no immediate plans to levy property rates at the appropriate punitive scale in the numerous illegal developments in and around Pretoria, despite its dire financial situation.<\/p>\n
That means other property owners will continue to subsidise them by paying more, since the amount of revenue the city budgets for is spread proportionally among the paying owners.<\/p>\n
Read:
Broke City of Tshwane forfeits billions as illegal developers get free ride
Opposition in Tshwane offers \u2018solution\u2019 for Kleinfontein rates problem
Tshwane moves to \u2018standardise approach to illegal developments\u2019
Tshwane to consider demolishing houses in illegal developments
City of Tshwane clamps down on illegal land use
Tshwane asks court to validate roadmap for Kleinfontein formalisation
Kleinfontein \u2018troublemakers\u2019 broker deal with Tshwane<\/p>\n
This comes as the city is trying to delay the court-ordered payment of around R1.5 billion in salary increases for municipal staff outstanding since 2022, because it does not have the money to do so.<\/p>\n
By failing to categorise illegal developments \u2013 where owners of thousands of formal houses are not paying property rates \u2013 as non-permitted use, the city is ignoring its own rates policy, says Rates Watch director Ben Espach.<\/p>\n
Lex Middelberg, councillor for the Republican Conference of Tshwane, points out that the city is acting inconsistently, since it had recategorised the illegal Afrikaner settlement Kleinfontein to non-permitted use, which sets its rates tariff at 7.5 times that of normal residential property.<\/p>\n
\nMoneyweb previously reported that Kleinfontein\u2019s total monthly property rates bill jumped R5 230 in August to R126 148 in September 2024 due to the recategorisation.<\/p>\n<\/blockquote>\n
In July last year Moneyweb further reported that the Tshwane city council had approved the implementation of such penalty rates on 713 property owners identified by the administration for illegal land use and failure to take remedial action.<\/p>\n
What the city says<\/strong><\/p>\n
Responding to an enquiry from Moneyweb, Tshwane MMC for Human Settlements Alderman Aaron Maluleka says:<\/p>\n
\n\nADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
\u201cThe city has not adopted a position to automatically recategorise illegal developments as \u2018unpermitted use\u2019 for property tax purposes.\u201d<\/p>\n
\n\u201cAny decisions relating to valuation or taxation will be informed by the approved framework, applicable legislation and council processes,\u201d says Maluleka.<\/p>\n<\/blockquote>\n
\u201cThe city\u2019s approach is guided by the principles of legality, fairness and proportionality, particularly in cases where residents acted in good faith and were misled by third parties.\u201d<\/p>\n
Discretion not allowed, but \u2018new framework\u2019 coming<\/strong><\/p>\n
According to Espach, the Tshwane rates policy however requires such categorisation and there is no discretion in this regard.<\/p>\n
\u201cAny such waiver would be unlawful.\u201d<\/p>\n
He notes that municipalities are legally allowed to change their rates policies only once a year as part of with their budget process. A new or amended policy then takes effect on 1 July, together with the new budget.<\/p>\n
The city established a Mayoral Sub-Committee on Illegal Townships and Settlements on 14 May 2025 and mandated it \u201cto develop a comprehensive, legally compliant and sustainable response to the establishment of illegal developments across the city.\u201d<\/p>\n
\nThe report of the sub-committee will serve before the mayoral committee this week.<\/p>\n<\/blockquote>\n
\u201cThis step is significant, as the approved framework will guide all further engagements and outcomes,\u201d Maluleka told Moneyweb.<\/p>\n
\n\nADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
\u201cAny recommendations emerging from consultations with landowners and residents must align with this framework. Where necessary, the city may subsequently propose lawful policy alternatives or reforms, including requests to council for legally permissible waivers, to address realities on the ground while safeguarding the integrity of the city\u2019s planning system.\u201d<\/p>\n
Listen\/read:\u00a0City of Tshwane to clamp down on illegal property developments, but when?<\/p>\n
Maluleka says substantial progress has been made.<\/p>\n
\u201cThe Terms of Reference have been approved, multiple meetings have been convened, and a consolidated list of 17 identified illegal townships has been compiled using inputs from the Economic Development and Spatial Planning Department and other municipal departments.<\/p>\n
\u201cThese include Rapao View or Rapao Village, Moloto City, Laezonia, Leeuwfontein, Elandsfontein Plots, Moshate Gardens, Prestige, Wallmannsthal, Haakdoringboom, Onderstepoort, Kleinfontein, Mooikloof and Kudube Unit 6.\u201d<\/p>\n
\nAccording to Maluleka the sub-committee has completed the first phase of consultations with affected landowners and residents.<\/p>\n<\/blockquote>\n
\u201cMore than 25 landowners were engaged, many of whom expressed willingness to pursue practical and lawful solutions, including regularisation, land disposal or partnership arrangements, subject to legal, valuation and planning processes.<\/p>\n
\u201cSeven public meetings were also held with residents, who consistently called for regularisation rather than punitive measures and indicated willingness to comply with lawful development requirements.\u201d<\/p>\n
Municipality is \u2018concerned\u2019\u00a0<\/strong><\/p>\n
Maluleka says\u00a0the city is concerned about the loss of municipal revenue resulting from unbilled or illegally consumed services, the systematic disregard of planning and land use by-laws, and the broader consequences of these practices.<\/p>\n
\n\nADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/p><\/div>\n<\/div>\n
\u201cIllegal developments undermine orderly spatial planning, strain infrastructure, degrade the natural environment and ultimately erode the principles of sustainable and inclusive urban development.\u201d<\/p>\n
\nA second phase of consultations with landowners and residents is scheduled to take place between 31 January and 8 February 2026.<\/p>\n<\/blockquote>\n
Final recommendations will be developed once these engagements and outstanding technical assessments, including infrastructure capacity evaluations, are concluded, Maluleka says.<\/p>\n
No fixed date has however been set for submission of a final report to the mayoral committee.<\/p>\n
Why was Kleinfontein singled out?<\/strong><\/p>\n
Middelberg points out that none of the almost 20 identified illegal developments were categorised as non-permitted use in the latest Tshwane valuation roll, except for Kleinfontein.<\/p>\n
Many of the valuations were also far below market value. He personally submitted objections to such valuations and is still awaiting feedback.<\/p>\n
\nHe accuses the governing ActionSA\/ANC\/EFF coalition of electioneering in the run-up to the municipal elections later this year.<\/p>\n<\/blockquote>\n
\u201cThey know there are up to 200\u00a0000 voters living in those developments and don\u2019t want to anger them by demanding property rates now.\u201d<\/p>\n
Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n