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‘How Much Is It Worth?’ Officials’ Properties Valued at Fraction of Market Price as Ratepayers Cry Foul
A legal wrangle over property valuations in Gauteng’s Lesedi local municipality has escalated into a wider governance storm, with indications that senior officials may be among the main beneficiaries of an unlawful municipal valuation roll.
The Mayor’s Properties
At the heart of the saga is mayor Mluleki Nkosi’s properties, along with those linked to other senior municipal figures, which appear to be significantly undervalued when compared to market estimates.
Nkosi’s residence in the upmarket Berg En Dal in Heidelberg extension 12believed to be worth at least R3.5 million was valued at just R800,000 on the roll.
Property prices in the neighbourhood range between R400,000 and R3.2 million.
The mayor’s property was also allegedly excluded from a supplementary valuation roll after he took occupation.
Further scrutiny points to a broader pattern:
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A 320m² property in Ratanda extension 23, registered to Nkosi, is valued at R400,000
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Another 270m² property in the neighbourhood, also registered to Nkosi, is listed at R425,000
Other Officials
Council Speaker Phindi Rachel Mpevu owns a 270m² property on Blackwood Avenue, which has allegedly decreased in value from R241,000 in the 2019 roll to R200,000 in the latest valuation.
According to local property prices, a basic two-bedroom house on a 317m² piece of land in Ratanda sells for R460,000.
MMC for corporate and legal services Mapule Motsepe saw her property, also on Blackwood Avenue in Ratanda extension 23, increased marginally from R126,000 in 2019 to R150,000 an increase residents argue was far below inflation and inconsistent with visible improvements.
According to local property data, residential properties of comparable sizebetween 250m² and 350m²in Ratanda sell for between R600,000 and R900,000. Even modest properties with standard finishes tend to exceed the R500,000 mark.
Residents’ Fury
Residents argue that these discrepancies suggest systemic undervaluation of properties linked to politically exposed individualseffectively lowering their municipal rates while ordinary residents shoulder a heavier burden.
“[We] in Heidelberg are asked to pay for more legal costs to still feather the nests of the elite. Executives taking the decision to appeal after not fulfilling public participation as the Municipal Property Rates Act…stipulated,” said resident Bouwe Wiersma.
Residents involved in the court challenge have also questioned the municipality’s rationale in pursuing the appeal.
The Municipality’s Defence
According to the municipality, Nkosi’s property was correctly recorded as vacant land at the time of valuation.
Properties are assessed according to their status on a fixed valuation datein this case, 1 July 2023 and not based on later developments or market activity.
A vacant land, the municipality said, is often rated at a higher tariff than improved residential properties, and a supplementary valuation will be conducted once construction is complete and compliance requirements are met.
The Court Ruling
The controversy comes in the backdrop of a recent ruling by the High Court in Johannesburg declaring the municipality’s 2024-29 general valuation roll invalid.
At the heart of the municipality’s legal argument is the concept of “substantial compliance”that demonstrating intent to follow due process should suffice.
However, the court has already rejected this reasoning, emphasising that full compliance with public participation requirements is non-negotiable.
The Bottom Line
For residents, the stakes remain high.
“This is no longer just about property values. It is about accountability, fairness and whether the rule of law applies equally to everyoneincluding those in power.”
The court has spoken. The valuation roll is invalid. And the question now is whether Lesedi’s officials will finally pay their fair share.
{Source: Citizen}
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