26 MBABANE PROPERTIES TO BE AUCTIONED

MBABANE – The Municipal Council of Mbabane, which has been strongly criticised for an absurd rates increase of 10 per cent on average, has given 29 ratepayers a 60 day ultimatum to pay up or lose ownership of their properties.

The properties worth millions of Emalangeni stand to be sold by public auction to recover E285 152.85 arrear rates. The properties, which could fall under the hammer according to gazette legal notice number 123 issued on Friday November 10, come in the wake of what was recently termed  as a ‘ridiculous rates increase’, with some ratepayers who have seen their rates increase by up to 50 per cent in some of the worst case scenarios. The gazette gives notice in terms of Section 32 (2) of the Rating Act 1995 to the owner or the occupier or to whom it may concern, that unless payment of the outstanding rates was made in respect of the listed properties within two months, an application would be made to court for such property to be sold by public auction in satisfaction of the rates due or owing. It should be pointed out that what compounded anger and worry of ratepayers after the ‘high’ rates increase, was the fact that in the case of rates default, the municipality takes legal action to collect outstanding fees; an action which had already seen a number of people lose out on their valuable properties which eventually got attached and auctioned.

“Where does the municipality expect us to comply with the rating act if they hike rates by over 10 per cent? The inflation, which determines the rate in which salaries are hiked and cost of doing business in general, stands at 6.9 per cent but the municipality has disregarded this and imposed a 10 per cent increase,” previously wondered a businessman who claimed that his business had been negatively affected by the rates increase.  When asked to justify the rates increase which is by far above the inflation rate, the municipality said overall the rates increases had been around the inflations level; however some property owners experienced higher percentage increases. The municipality said the decision on rates was taken as part of the budget process and increases above inflation helped to fund infrastructure projects. An immediate example of the rehabilitation of Mantsholo Road for which council had to take a loan of E20 million, which will be repaid over many years, was put across as justification on why the rates were hiked to the average of 10 per cent.

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