DA out of pocket after failed interdict
2009-11-12
Anne Kruger
THE DA’s application that the municipal budget approved by the Drakenstein municipal council in May, be declared unlawful and set aside, was refused with costs by Judge Patricia Goliath in the Cape High Court on Monday. This means that the DA and its co-applicants, former councillor Deetlefs du Toit (now member of the provincial parliament) and businessman Tokkie de Beer, will have to foot the bill for the bulk of the legal costs, likely to run to about R450 000. The DA’s application against the Municipality, as well as the mayor and senior finance officials in their personal capacities, was based on the premise that the advertised average increase of 7,5% in municipal property rates was misleading. According to the DA’s calculations, at least 60% of ratepayers had experienced increases greater than 7,5%, while 45% of properties had allegedly seen an increase of 27% in property rates, while the advertisement allegedly failed to convey a reasonably accurate summary of the proposed property rate increases. Furthermore, the DA contended that the advertisement failed to explicitly invite members of the public to submit representations in connection with the budget and failed to accurately convey the actual financial impact on ratepayers. The Municipality contended that it had given sufficient notice over and above statutory requirements, including a public participation process. As a result of the objections from the public received during this process, the property rate for residential properties was in fact decreased from 0,0051c to 00,0049 cents per Rand value. The Municipality also contended that at least 82% of all properties did not have a property rate increase in excess of 7,5%, if exempted properties are taken into account. In her ruling, Judge Goliath stated: “The factual basis of the current application is fundamentally flawed and legally misconceived. I cannot find fault with the procedures followed by the first respondent (Drakenstein Municipality). “I am satisfied that there has been substantial compliance with the relevant legislation and there is no need to interfere with the final budget. The application is dismissed with costs including the costs of two counsel.” The Executive Director for Finance at the Drakenstein Municipality, Cavin Petersen, said that the public could be confident in the sound financial management of the municipality’s Financial Department: “Numerous budgets were tabled which complied with all the legal requirements and credible information. This has been proven in the judgment.” Drakenstein has received an unqualified (clean) audit report from the Audit General with an A+ grading, the best in the province. Commented the portfolio holder for finance, councillor JT Basson, “The ANC alliance in Drakenstein strives to ensure good quality service with the limited funds available. “I invite all the residents of Drakenstein to get involved and participate in the IDP and budget process of the municipality to prevent unnecessary court cases which are a waste of time, money and energy.”
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