Home | News | AFRICA CONTINENT MISSION ORDERED TO PAY COUNCIL E1M

AFRICA CONTINENT MISSION ORDERED TO PAY COUNCIL E1M

Font size: Decrease font Enlarge font

MBABANE – Africa Continent Mission (ACM), which operates, among other institutions, the Eswatini Medical Christian University has been ordered to pay the Mbabane Municipal Council over E1 million in respect of arrear rates.


The order directing ACM was issued by Mbabane Senior Magistrate Nonhlanhla Dlamini. 
Senior Magistrate Dlamini issued the order after the Mbabane Municipal Council filed an application where it was seeking an order compelling the respondent (ACM) to pay the aforementioned amount in respect of a property that was leased to the respondent. In its application, the applicant (Mbabane Municipal Council) averred that the respondent was liable to pay rates in respect of the property on the basis that it was holding title over the land.


Applicant further contended that subject to Clause 5.4 of the Notarial Deed of Lease No.10, the respondent was liable to pay rates in respect of the property and not the Eswatini Government.
Meanwhile, ACM argued that it was not the owner of the property, since it was leased to it for a period of 50 years as provided for in Section 2 of the Rating Act.  


 In Section 2 (c) of the Rating Act, an owner of immovable property is described to mean a person in whom legal title of such property is vested, where such property had been leased for a period of 50 years or more.


The respondent further argued that it was exempted to pay rates in respect of the property based on the fact that it was adversity and operating a university. 
According to the respondent, it was a non-charitable organisation.


In her ruling, the senior magistrate said it was common cause that the lease agreement between the respondent and the Eswatini Government as per the Notarial Deed was for 40 years.  She pointed out that it was also not in dispute that the respondent operated a university within the leased property.


Classified


“In light of the fact that the lease, as per the Notarial Deed is 40 years, it follows that the respondent could not be classified as the owner of the property.
However, Clause 5.4 clearly states that the respondent shall be liable to pay rates in respect of the rateable part of the property,” said the senior magistrate.
She stated that in her view, Clause 5.4 of the notarial deed of the lease imposed a duty on the part of the respondent to pay rates in respect of the property, not withstanding the fact that in terms of the Rating Act it was not liable to pay rates.


Senior Magistrate Dlamini further pointed out that it was common cause that the respondent being a university was subject to exemption from paying rates.
“However, exemption to pay rates is not automatic but the law requires that a property owner shall apply to the local authority for his property to be considered for exemption in paying rates,” said the court.


The court stated that the  provisions of Section 9 clearly stipulated that an owner of immovable property which he  or she claimed was exempted from payment of rates by reasons of Section 7, should be entitled to apply to the local authority for such property to be exempted.



Comments (0 posted):

Post your comment comment

Please enter the code you see in the image: