BY MBONO MDLULI
LOBAMBA– The Malkerns Town Board is continuing its efforts to recover millions of emalangeni in unpaid rates through the courts, a move that has been welcomed as an important step towards improving municipal finances and strengthening service delivery.
The issue was highlighted in findings presented by the Auditor General, who reported that the Town Board was carrying long outstanding rates debtors dating back to 2016 amounting to E4 882 913.00. The debt formed part of a broader receivables balance that remained significant despite some reductions during the period under review.
According to the Auditor General, the outstanding rates had remained unpaid for several years with no legal proceedings initially instituted as provided for under Section 32 of the Rating Act of 1995.
The report further revealed that the Town Board was also dealing with disputed rates amounting to E1 206 935.91. These disputes arose after debtors were requested to confirm their balances. Responses received from some property owners indicated disagreement with the amounts reflected in the Town Board’s records.
According to a PAC report of 2024 that has since been tabled in the House of Assembly, despite these challenges, the Town Board has since taken decisive action.
Appearing before the Public Accounts Committee in 2022, the Controlling Officer explained that some property owners had refused to pay rates for various reasons. Some argued that their properties did not fall under the authority of the Town Board, while others disputed the rates charged against their properties.
Recognising the need to protect public revenue, the Town Board sought legal intervention and successfully obtained a court order aimed at facilitating the recovery of the outstanding amounts.
The legal action represented a significant milestone in the Board’s efforts to address the longstanding debt problem. However, the matter did not end there. During subsequent appearances before the Committee in 2024, the Controlling Officer reported that ratepayers had appealed the earlier court ruling, resulting in the matter returning to court.
Members of the Committee acknowledged the complexity of the issue but commended the Town Board for pursuing lawful avenues to recover public funds.
They noted that rates revenue remains a critical source of income for local authorities and is essential for the provision of services such as road maintenance, refuse collection, environmental management and other municipal responsibilities.
The Committee encouraged the Board to continue pursuing the matter and to keep both Parliament and the Auditor General informed of developments.
Analysts say the Board’s determination to address the debt demonstrates a growing commitment to sound financial management and accountability within local government structures.
Should the recovery efforts prove successful, the funds could significantly improve the Board’s financial position and support development initiatives within the town.
The case is expected to remain before the courts as legal proceedings continue, with stakeholders hopeful that a final resolution will provide certainty for both the Town Board and ratepayers while ensuring that public revenue is protected.
(Courtesy Pic)
