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IOL News
3 days ago
- Business
- IOL News
High commercial property rates in eThekwini impact on business investment and economic growth
Concerns have been raised over high commercial property rates in eThekwini Municipality. Image: Willem Phungula Concerns have been raised about the high commercial property rates charged by the eThekwini Municipality in comparison to the City of Cape Town and the City of Johannesburg. Publicly available information indicates that eThekwini Municipality has the highest rates, a view echoed by the South African Property Owners Association. Documents reveal that in the City of Cape Town, the rates randage on commercial property for the 2025/26 financial year is 0.016824, as confirmed by the city. In the City of Johannesburg, the charge for the same financial year is 0.023862. In eThekwini, the rates randage stands at 3.6234 for the same year. Councillors of the municipality and a resident have warned that these high rates could undermine the city's efforts to attract businesses. The South African Property Owners Association confirmed that commercial rates were high in eThekwini. 'Our data shows that eThekwini is the most expensive municipality to do business in with respect to commercial business rates.' A community member with an active interest in public policy and urban economic sustainability, who did not want to be named, said he had done a comparison of eThekwini's rates randage with other major metros in South Africa and key international benchmarks, and found that the rates charged in eThekwini were markedly higher. He noted that these unusually high rates charges may have serious long-term implications for eThekwini. By significantly increasing the cost of holding and operating property, 'existing businesses may be driven out of the municipal area as operating costs become unsustainable, especially for small to medium enterprises. Prospective investors may be deterred from choosing Durban as a base for commercial expansion or property development when more cost-effective alternatives exist both locally and abroad.' 'This, in turn, could lead to a shrinking rates base, as more properties are vacated or lose value due to market pressure, leaving the municipality with fewer contributors to fund essential services. The municipality could then find itself in a downward fiscal spiral, where declining revenue necessitates further rate increases, which further undermines investment and retention of ratepayers.' Asked about how their commercial property rates were calculated, Councillor Siseko Mbandezi, Mayoral Committee Member for Finance in the City of Cape Town, said the rates randage on commercial property for the 2025/26 financial year is 0.016824. 'All tariffs are charged in accordance with the City of Cape Town Tariff Policy. As with residential properties, the City determines the total revenue required to deliver the infrastructure and services needed to support a functional, successful city. The City's budgets aim to balance affordability for ratepayers with the needs of running the city to the benefit of all,' said the councillor. DA eThekwini councillor Thabani Mthethwa said the high rates were among the reasons that eThekwini is struggling to attract investment and the rates base keeps shrinking. 'It is expensive to do business in eThekwini, coupled with the general collapse in basic service delivery. Therefore, eThekwini charges more but delivers less.' IFP councillor Jonathan Annipen said this was a red flag for economic growth and sustainability in the region. 'High rates increase the cost of doing business, reduce profit margins, and deter both local entrepreneurs and external investors. In an already struggling economy, this can accelerate business closures and job losses, further weakening the city's revenue base.' He added that while the municipality may argue that these rates are necessary to fund infrastructure, service delivery, and developmental projects, the reality is that overburdening businesses can have the opposite effect. 'Factors like the city's budget deficit, ageing infrastructure, and the need for expanded service delivery may inform rate decisions—but these cannot be addressed by simply increasing financial pressure on the private sector. In the long term, rates can be adjusted through broader fiscal reform. eThekwini must explore alternative revenue streams, improve collection efficiency, and reduce wasteful expenditure. Incentivising businesses that invest in local employment, skills development, and green technology can promote economic activity while maintaining revenue flow,' he concluded. Last week, The Mercury reported that business confidence had declined in the second quarter of 2025. The Durban Business Confidence Index (DBCI) report showed that the index decreased to 52.4 index points in quarter 2, marking the third consecutive quarterly decline. In addition, 71.4% of respondents stated that, when lodging a complaint regarding poor service, it was unlikely to be resolved in a timely manner. The City of Johannesburg did not respond to a request for comment. The eThekwini Municipality was contacted for comment about two weeks ago and reminders were sent but it had not responded by the time of publication. THE MERCURY
IOL News
21-07-2025
- Business
- IOL News
eThekwini Municipality denies awarding contracts for smart meters amid allegations of wasteful expenditure
eThekwini Municipality denies purchasing smart meters from seven companies, saying the procurement process is still ongoing. Image: Willem Phungula eThekwini Municipality has denied awarding seven companies to supply electricity smart meters. In a written response to the story that the Independent Media published last week, the city's spokesperson, Gugu Sisilana, said the municipality was not aware of differing quantities being placed across suppliers; therefore, dismissing the assertion of wasteful expenditure. Sisilana said the procurement process is still ongoing. 'The allegations of wasteful expenditure, which are not corroborated by any evidence, are not true. This is due to the fact that the procurement process for electricity meters is still ongoing through the Supply Chain Management process. We are not aware of differing quantities being placed across suppliers,' she said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Despite the city's denial and information obtained from the city's website, it was revealed that indeed the companies were awarded. Independent Media also saw purchase orders matching the companies on the city's website. Sources within the municipality have described the decision to award all the companies as an attempt to avoid awarding the tender to a qualified supplier with the lowest quote. The source said the only possible reason for this was that the officials wanted kickbacks from the highest bidders. In May 2024, the National Treasury approved the RT29 national transversal for smart metering. The Treasury approved seven companies for the city to choose from when buying these smart meters. In the purchase orders, the city ordered 2,000 smart meters from a particular supplier, which cost R2,591 per unit, whereas the other supplier's unit price was R1,645. One provider charged R2,218 per item, while the other charged R1,811. The city had to pay R5.9 million for 2,000 smart meters from the highest-priced supplier, which likewise had a unit price of R2,600. The source said the city also ordered non-smart meters for R1,996 per unit, which totalled R4.5 million for 2,000 units. It is not clear why the city needed non-smart meters and which customers will be supplied with them, whereas others use smart meters. Among the companies are two giant cellular network companies. In contrast to non-smart meters, which require personnel to physically visit the site and disconnect when consumers have circumvented them or established unauthorised connections, smart meters may be switched off by city officials from the office, the source claimed. 'This is another wasteful expenditure the city has incurred, and there is no valid reason why the officials chose to purchase the same product with the same quality from different suppliers with varying prices. Surely, there is something fishy,' said the source. The municipality has been in the headlines for incurring costs that many view as wasteful, stemming from court cases it has lost. It was recently forced to pay a supplier more than R20 million, which was an interest that had accumulated from the court appeals it had finally lost. The supplier had initially demanded R30 million, which the city disputed but lost the appeal.
IOL News
20-07-2025
- General
- IOL News
MEC Martin Meyer adopts struggling school for deaf pupils in Durban
KwaZulu-Natal Public Works and Infrastructure MEC Martin Meyer adopted a deaf school as part of Mandela Day commemoration. Image: Willem Phungula In commemoration of Mandela International Day, KwaZulu-Natal Public Works and Infrastructure MEC Martin Meyer has pledged his support by adopting a financially struggling school for deaf pupils. On Friday the MEC, flanked by his department head Dr Vish Govender and eThekwini Municipality ward 97 councillor Andre Beegte spent his 67 minutes in Durban School for hearing impaired in Amanzimtoti south of Durban where he participated in painting the school's ablution facilities. The school owes the municipality R1,5 million for water and R800, 000 for the electricity which the school attributed to undetected underground water leaks and cable theft. The school has just over 300 pupils which are some of them are intellectually impaired and autistic. It has only one therapist which the school management says gives them problems. Speaking at the event, the MEC pledged to support the school and announced that he will partner with the non-governmental organization to fix water leaks in the school. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Meyer, who is now a new resident of Amanzimtoti, said it was a cabinet decision that all MECs must choose a school they will support. He said he chose the school because he always drive past it everyday when going to and from work. The MEC said the second reason he chose the school was that his brother is also hearing impaired. 'The other reason is that my department works closely with the people living with disabilities to a point that we developed the app to assist the disabled to get jobs,' said Meyer. The MEC said as the country is in a difficult place right now remembering Mandela and emulating his leadership has never been so important, He described him as a selfless leader who willingly served his one term and stepped down to allow others to lead, adding that today politicians don't want to leave office. The MEC said Mandela also loved children whom he called future leaders so it was important that new leaders also support children because they are the future. This year was the 16th commemoration of Mandela day where the United Nations declared 18 July -which is Mandela's day birthday- to be dedicated to the upliftment of the societies particularly the vulnerable communities where everyone must dedicate his or 67 minutes in honour of Mandela.
IOL News
17-07-2025
- Business
- IOL News
eThekwini Municipality under fire for expensive smart meter purchases
eThekwini Municipality could face another backlash for purchasing costly smart meters, leaving cheaper ones of the same quality. Image: Willem Phungula eThekwini Municipality could be in hot water again for an apparent wasteful expenditure after procuring electricity smart meters from the highest bidders instead of the lowest. In what sources have described as an attempt to avoid awarding the tender to a qualified supplier with the lowest quote, the city decided to buy smart meters from all seven suppliers at once. The source said the only possible reason for this was that the officials wanted kickbacks from the highest bidders. In May 2024, the National Treasury approved the RT29 national transversal for smart metering. The Treasury approved seven companies for the city to choose from when buying these smart meters. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading In the purchase orders seen by Independent Media, the city purchased 2,000 smart meters from a particular supplier, which cost R2,591 per unit, whereas the other supplier's unit price was R1,645. One provider charged R2,218 per item, while the other charged R1,811. The city had to pay R5.9 million for 2,000 smart meters from the highest-priced supplier, which likewise had a unit price of R2,600. The source said the city also ordered non-smart meters for R1,996 per unit, which totalled R4.5 million for 2,000 units. It is not clear why the city needed non-smart meters and which customers will be supplied with them, whereas others use smart meters. According to the source, the distinction between smart and non-smart meters is that the former can be turned off by city officials from the office, while the latter require staff to travel to the location and disconnect in cases where customers have bypassed them or made illegal connections. 'This is another wasteful expenditure the city has incurred, and there is no valid reason why the officials chose to purchase the same product with the same quality from different suppliers with varying prices. Surely, there is something fishy,' said the source. The city had not responded to the questions sent to its communications team on Wednesday. The municipality has been in the headlines for incurring costs that many viewed as wasteful, emanating from the court cases the city had lost. It was recently forced to pay a supplier more than R20 million, which was an interest that had accumulated from the court appeals it had finally lost. The supplier had initially demanded R30 million, which the city had disputed but lost the appeal.
IOL News
30-06-2025
- IOL News
eThekwini Municipality pays a collective R1 million in damages for unlawful arrests
The eThekwini Municipality was forced to pay damages to three men who were unlawfully arrested for drinking in public by the Metro police. Image: Willem Phungula / Independent Newspapers The eThekwini Municipality has paid out collective damages of R1 million in a case brought by three men who said they were unlawfully arrested by Metro police officers for carrying sealed bottles of beer. A judgment handed down by the Durban High Court earlier this year revealed that the men were initially suspected of drinking in public by the Metro police due to their possession of the sealed bottles. The situation thereafter escalated and the men were arrested and spent time in jail, where they said they were subjected to severe mistreatment. One of the men, Philani Lukhele, was also shot in the leg during the incident. The court awarded the men damages for past loss of earnings, unlawful arrest and detention, and assault and contumelia. Msizi Cele was awarded R231,000, Welcome Hlongwa received R240,200 while Lukhele's case was distinguished from the other due to the severe injury he sustained. He was awarded R649,500. The court judgment noted that all three victims testified in support of their claims, while the municipality closed its case without calling any witnesses. 'The undisputed evidence of the plaintiffs' case is that on 15 December 2012, they were walking in Chatsworth towards the taxi rank, carrying two sealed bottles of beer,' the judgment stated. The men testified that a Metro police officer, who was in a private vehicle, approached them and accused them of drinking in public. The three denied this, asserting that their beers were sealed. The three boarded a taxi to Durban and the Metro police followed them in their vehicle and then stopped the taxi at a roadblock. Other officers were also at the roadblock. The officer who had initially questioned them pointed them out to other officers, leading to their removal from the taxi. 'When the victims inquired about their alleged wrongdoing, the police did not respond. Instead, they were assaulted publicly. The police fired four shots in the direction of Msizi but missed him; they eventually shot Philani in the knee,' said the judgment. The men said they were handcuffed and placed in a Metro police van and pepper spray was sprayed in the back of the van. When Lukhele, who suffers from asthma, requested his inhaler, one of the officers took it from his pocket and inhaled from it, the judgment said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading It said the police then transported them to Chatsworth police station, where they were further assaulted. The three, according to the judgment, said they had overheard one officer instructing another to fabricate a story that they had attempted to deprive the officer of his firearm. Shortly thereafter, an ambulance arrived, but the driver spoke to the police officer and then drove away. Lukhele was taken to the hospital, where he was treated for his injury while being guarded by police and handcuffed to a bed. 'Msizi and Welcome were taken to Bellair police station, where they were detained for four days before being brought to Chatsworth Magistrates' Court, where they were released without appearing in court.' During their four days in detention, Msizi and Welcome said they did not eat any food; they were given one meal by another detainee who was receiving food from his family. Philani spent six days in hospital and was released without appearing in court. The court found that the circumstances of the case demonstrated malice on the part of the Metro police during the arrests. 'The evidence indicated that the police were not investigating any offence and had no reasonable suspicion against the plaintiffs when they were arbitrarily arrested. The police shot at unarmed individuals who posed no threat, victimising those they were meant to protect.' The plaintiffs were represented by attorney Ajit Severaj. It is understood that the municipality has made payment to the plaintiffs. The City was contacted for comment last week but had not responded by publication. THE MERCURY
