Valued at how much? Gauteng municipality officials get sweet rates deals

Aggrieved ratepayers have argued that valuations fell well below realistic market values.

The 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.

At the heart of the saga is mayor Mluleki Nkosi’s properties, along with those linked to other senior municipal figures that appear to be significantly undervalued when compared to market estimates.

The Citizen has previously revealed that Nkosi’s residence in the upmarket Berg En Dal in Heidelberg extension 12, believed 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.

A 320m² property, in Ratanda extension 23, also registered to Nkosi, is valued at R400 000, while another 270m² property in the neighbourhood, also registered to Nkosi, is listed at R425 000.

Market value?

Aggrieved ratepayers have argued that these valuations fell well below realistic market values.

The controversy extends to other senior officials. Council Speaker Phindi Rachel Mpevu owns a 270m² property, 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 sell for R460 000.

Meanwhile, the municipality’s 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 size – between 250m² and 350m² – in Ratanda sell for between R600 000 and R900 000.

Even modest properties with standard finishes tend to exceed the R500 000 mark. Against this backdrop, the valuations of properties linked to municipal leadership appear low.

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Residents gatvol

Residents argue that these discrepancies suggest systemic undervaluation of properties linked to politically exposed individuals, effectively 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.

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.

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 everyone – including those in power,” a resident said.

Court ruling

This comes in the backdrop of a recent ruling by the High Court in Johannesburg declaring the municipality’s 2024-29 general valuation roll invalid.

According to the municipality, Nkosi’s property was correctly recorded as vacant land at the time of valuation.

The municipality has explained that properties are assessed according to their status on a fixed valuation date, 1 July 2023, in this case, and not based on later developments or market activity.

A vacant land, the municipality said in a statement, was 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.

NOW READ: Court declares Lesedi property valuation roll unlawful