ANC and DA in unlikely alliance

05 December 2016 - 11:06 By GRAEME HOSKEN
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In an attempt to stop the Constitutional Court from confirming an order that freed new homeowners of debt accumulated before they bought a property, the DA and ANC have formed an unlikely alliance.

Lawyers for the ANC-run Ekurhuleni municipality and DA-led City of Tshwane are trying to convince the Constitutional Court to overturn the earlier order.

The Pretoria High Court had invalidated a section of the Local Government Municipal Systems Act.

The section allowed municipalities to recoup the debt of the previous homeowners from the new one.

The SA Local Government Association, at the time, warned that Judge Dawie Fourie's ruling could result in ruin for some municipalities, which were already owed more than R100-billion.

Thekiso Maodi, representing Tshwane, said in papers that the Act allowed municipalities to finance their affairs by charging fees for services and imposing surcharges on fees, rates on property and other taxes, levies and duties.

"Without those fees, rates, taxes, levies and duties, a municipality cannot fulfil its constitutional mandate. It's important that a municipality be allowed to collect municipal debts and reduce unpaid debts," Maodi said.

He said debts were tied to the property and its worth rather than consumers and their unpredictable ability to pay.

Maodi said new owners often bought property while aware of the debt.

"It cannot be argued that the act is procedurally unfair," he said.

The applicants to the h igh c ourt had been provided statements by the Tshwane municipality "reflecting all historical debts, including debts older than two years which would have informed their purchases", said Maodi.

He said the applicants could have resolved the dispute with the municipality before going to court.

Ekurhuleni's lawyer Natasha Chiba said the buyer had full knowledge of the debt "and in some instances even undertakes to settle the debt".

The case will be argued at a later date .

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