By Liad Hadar, Director at Hadar Incorporated, Specialist Property Law Firm
This article first appeared in Asset Magazine’s February 2025 edition
In previous articles, Municipal Shock and Unravelling the Chaos, I highlighted the pervasive billing crises faced by property owners due to the City of Johannesburg’s administrative inefficiencies and heavy-handed collection tactics.
My first article on this topic was published in 2022, yet the City’s practice continues and our Firm has been involved in numerous applications against the City, the most recent of which was an urgent High Court application against the City and Johannesburg Water in mid-January this year.
The circumstances in this latest matter once again underscore the fundamental problems that property owners are battling against. This case serves as a stark warning of the legal and financial vulnerabilities landlords face at the hands of municipal authorities wielding unchecked power, combined with an administrative disorder.
A 2025 Case of Unlawful Disconnection
Our client, an owner of a residential property complex comprised of 60 units, was blindsided by the abrupt disconnection of its water supply—an action taken without the legally mandated pre-termination notice. This unlawful action not only left numerous families in an invidious position without water, infringing on their constitutional rights, but also left our client vulnerable to damages claims as landlord.
Water charges, tariffed on a levy per unit, only came to our client’s attention, for the first time, after a representative of the City / Johannesburg Water arrived unannounced at the property to effect the disconnection.
Upon investigation, after the administrative hassle of sending a representative to the City’s offices, it was discovered that such water charges were charged to our client under an account number never previously seen nor received. The extent of such charges was over 2 million rand, accumulated over a period spanning more than a decade, were suddenly thrust upon our client despite them never having been properly invoiced, nor had they been notified of the existence of such account or alleged arrears until that moment.
To compound matters, the City advised our client that unless an immediate payment was made and an acknowledgment of debt signed, our client would remain under the threat of continued service disconnection. Fortunately, our client was not bullied into this position and contacted us to intervene in the matter.
After issuing and serving our client’s urgent application, but before incurring the costs of arguing the matter, the City capitulated and agreed to an order in terms of which they would reconnect the services, undertake not to disconnect same pending the outcome of a statement and debatement of our client’s account by the end of February 2025.
Parallels to Previous Municipal Mishaps
This case echoes the troubling themes of my previous discussions on municipal misconduct. In Municipal Shock, I emphasized how overbilling and backdated charges are not merely financial burdens but also existential threats to businesses. The City’s habitual refusal to engage meaningfully with property owners in dispute resolution leads to unnecessary litigation, forcing property owners to seek urgent legal interdicts to prevent or undo unlawful disconnections.
Similarly, in Unravelling the Chaos, I outlined the case of a hotel owner who faced an erroneous R26 million electricity charge—an issue ultimately resolved only through urgent Court intervention.
Although there are several overlaps, the progress which we’ve seen in our Courts supporting the property owner’s position and rights is encouraging.
The Court’s Position and the Road to Justice
In a recent judgment in the Johannesburg High Court, following several others from the past year, the Court criticized the City of Johannesburg for its “abuse of power resulting from robust yet unprincipled debt collection practices”.
The Court highlighted the City’s failure to adhere to procedural fairness, particularly in disputes over alleged account arrears and the disconnection of utility services. This judgment underscores the necessity for municipalities to follow lawful procedures and for property owners to remain vigilant against potential overreach.
The Court’s involvement in such matters generally results in an order for the reconnection of services, an interdict preventing further disconnections and compelling the City to engage in a structured statement and debatement process with the property owner.
The Court’s judgments against the City in numerous matters reinforces two critical points:
- Municipalities must comply with procedural fairness.
The City’s unilateral actions, absent proper notification, were unlawful and in direct contravention of the Local Government: Municipal Systems Act. - Property owners must remain vigilant and proactive.
Even longstanding municipal accounts are not immune to sudden and unexplained charges, making regular audits of municipal billing statements an absolute necessity.
The Courts have also ordered that the City’s legal representatives, generally panel appointed attorneys and advocates, must carefully consider the merits of opposing legal proceedings on the City’s behalf, failing which they will need to justify why the Court should not make an order that they are not entitled to legal fees.
Given that most of these matters should be resolved without the need for unnecessary legal action, made worse by opposition from the City, I am of the view that this may be a very effective mechanism to avoid repeated scenarios once the City has already caused disruption and issues for property owners.
A Call for Reform
Municipalities hold immense power over property owners and our latest case demonstrates how their administrative failures directly impact lives and livelihoods.
While the Courts offer a remedy, the financial and operational toll inflicted on property owners and tenants alike cannot be overstated.
Municipal billing reform is long overdue and property owners must collectively advocate for greater transparency, efficiency and accountability. Until then, vigilance and swift legal recourse remain the only viable safeguards against arbitrary municipal actions.
As we have seen time and again, the City of Johannesburg’s billing system is fraught with errors, inefficiencies and bureaucratic inertia. Our latest legal battle serves as yet another testament to the ongoing struggles faced by property owners. For those caught in the crosshairs of municipal overreach, the message is clear: know your rights, challenge irregular charges and, when necessary, take the fight to Court to protect your property and business interests.