The court action represents a desperate attempt by the Msunduzi Municipality to recover rate arrears totalling almost R204 million from the 7000 odd home owners. A further 7500 property owners were also in arrears and could find themselves in the same trouble.
Rates arrears have risen from 12.34% in 1998 to 22.86% last year. The municipality was also the recipient of a restructuring grant from the National Treasury, which grant is conditional on it reducing its book debt. In Durban meanwhile, thousands of ratepayers will be relieved to know that the executive committee has agreed to postpone auctioning their homes. No action has been taken against homeowners whose properties have a value of less than R100 000 or who have a debt of less than R2 500.
Article in the Mercury
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