Cogta has not engaged the City of Cape Town over the court judgment on fixed tariffs
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The Department of Cooperative Governance and Traditional Affairs (Cogta) had not engaged the City of Cape Town regarding compliance with the April judgment that found its fixed municipal tariffs were unlawful and invalid, Minister Velenkosini Hlabisa said.
Responding to parliamentary questions from ANC MP Mzwanele Sokopo, Hlabisa on Wednesday said municipalities are required at all times to ensure that their tariff policies and tariff structures comply with the Constitution, the Municipal Systems Act, the Water Services Act and all applicable regulations and norms and standards.
“The responsibility for adopting and implementing compliant tariff structures rests with the concerned municipal council,” he said.
Sokopo had asked whether the department engaged the City of Cape Town following the Western Cape High Court judgment and what steps his department has taken to ensure that municipal water tariff structures across the country comply with national legislation and the Constitution.
The judgment concerned fixed charges for city-wide cleaning, water and sewerage in Cape Town’s 2025/26 budget, and declared them unlawful and invalid insofar as they conflicted with legislation, the Constitution and the city’s tariff by-law.
In his reply, Hlabisa said the existing legislative and regulatory framework provided clear guidance on the matter, in particular, the Revised Norms and Standards in Respect of Tariffs for Water Services which permitted municipalities to levy fixed charges, provided that such charges are directly related to the fixed costs associated with providing the service.
“The norms and standards expressly require that the cost elements and revenue recovered through fixed charges be linked to the cost of supply and not exceed the fixed costs associated with water and sanitation services.”
He also said municipal councils are expected to review their tariff policies periodically and to ensure alignment with applicable legal requirements, including relevant court judgments and sector-specific regulations.
“This approach promotes legal certainty, protects consumers and supports sustainable municipal service delivery.”
Meanwhile, Hlabisa was also quizzed by ActionSA MP Dereleen James on the Public Protector’s recent findings on the delivery of basic services to residents of Langa and Khayelitsha and the Constitutional Court that found the City and the Western Cape Government failed to fulfil their constitutional obligations to provide affordable, well-located housing.
Asked whether he has found the City to be a model of good local governance, Hlabisa said his department does not designate any municipality as a “model of good local governance”.
He said municipal performance is assessed against constitutional and legislative obligations relating to service delivery, accountability, financial management, responsiveness to communities and the progressive realisation of constitutional rights.
The minister noted that the findings of the Public Protector and the Constitutional Court identified areas where the City must strengthen compliance with its constitutional and statutory obligations.
Hlabisa stated that the findings should be taken seriously and appropriate remedial and corrective measures implemented.
“Findings and remedial actions arising from oversight institutions and court judgments should be used as opportunities to strengthen governance, accountability, service delivery performance and public confidence in local government."
However, the minister stated that the Public Protector’s report acknowledged that the City of Cape Town implemented a number of interventions during the investigation, including infrastructure repairs, sanitation improvements, waste management measures, upgrades to facilities, and engagement with affected communities.
“The department’s position is that all municipalities, including the City of Cape Town, must continuously improve their governance systems, service delivery performance, and responsiveness to community concerns to advance the constitutional objectives of local government. Compliance with the remedial action of oversight institutions and with applicable court judgments remains an important measure of municipal accountability and good governance.”
Hlabisa emphasised that the findings by the courts and the Public Protector highlighted a number of important lessons for municipalities across the country.
These included the need for municipalities to proactively maintain and invest in critical infrastructure to ensure the sustainable delivery of basic services.
“Service-delivery complaints must be addressed timeously and supported by effective communication, feedback and community engagement mechanisms.”
He also said municipal by-laws and land-use management measures must be effectively enforced to protect public infrastructure and support service-delivery outcomes.
“Municipal planning and implementation should take account of the needs of vulnerable communities and support the progressive realisation of constitutional rights, including access to adequate housing and basic services.”
He urged municipalities to strengthen intergovernmental coordination and collaboration with national and provincial departments, state entities and communities where service-delivery challenges require a collective response.
