Jordaan v City of Tshwane: A Structured Constitutional Challenge to Section 118(3) and Municipal Debt Enforcement

Introduction

The matter of Jordaan v City of Tshwane Metropolitan Municipality represents a structured constitutional challenge to the interpretation and application of Section 118(3) of the Municipal Systems Act.

The litigation was underpinned by extensive pre-existing factual material derived from municipal account audits conducted by New Ventures Consulting & Services.

section 118

Livanos Wins in Constitutional Court – read more

These matters included, among others, the following High Court applications in which New Ventures appeared as an applicant alongside its clients:

  • Case No: 74195/2013 – Chantelle Jordaan & New Ventures Consulting & Services
  • Case No: 13039/2014 – FM Kekana, MR Maleboloa, SR Maleboloa, M Mamotsau & New Ventures Consulting & Services
  • Case No: 13040/2014 – Billie Ann Livanos, Leah Henderson, Clifton Dunes Investments 317 (Pty) Ltd & New Ventures Consulting & Services
  • Case No: 23826/2014 – Oak Plant Rentals (Pty) Ltd, Stepping the World (Pty) Ltd & New Ventures Consulting & Services
  • Case No: 19552/2015 – Gemma Diamonds (Pty) Ltd & New Ventures Consulting & Services

Read more: the origins of rates clearances

Factual Foundation

Prior to litigation, New Ventures had acted for multiple clients in relation to:

  • Disputed municipal accounts
  • Clearance figure reductions
  • Historical debt challenges
Section 118 extracted from Local Government Municipal Systems Act 32 of 2000

Read more: Section 118 as extracted from Local Government Municipal Systems Act 32 of 2000

This body of work produced a reliable evidentiary foundation demonstrating:

  • Systemic high clearance figures
  • Inconsistent application of municipal policies
  • Improper attribution of historical debts to new owners

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Structuring of Applicants

The applicants were carefully considered and selected to reflect a range of factual scenarios before approaching the courts for rescue, including:

  • Individual property owners
  • Vulnerable persons
  • Corporate entities
  • Properties acquired through judicial sales

This ensured that the legal issues could be tested across multiple contexts.

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Read more: The Star newspaper exposes New Ventures court case and message

Legal Issues

The primary questions before the Court included:

  • Whether Section 118(3) permits recovery of historical debts from new owners
  • Whether such recovery constitutes arbitrary deprivation of property
  • Whether the absence of public registration of such debts renders enforcement unconstitutional

 

Conclusion

The Constitutional Court’s decision confirmed that historical municipal debt cannot be enforced against a new property owner, thereby clarifying the limits of municipal authority and reinforcing constitutional property protections.

National Attention and Recognition

Following the Constitutional Court decision, the matter attracted widespread national attention.

The story was covered across:

  • major television news platforms
  • national and regional newspapers
  • a wide range of media outlets
section 118 news coverage

View the media and news coverage

The scale of the coverage reflected the importance of the case and the impact it had on the property industry and the broader public.


Municipal Debt Specialist authority on Section 118

 


LEGAL AND FAST MUNICIPAL CLEARANCE REDUCTIONS ON ALL TYPES OF SALES:

If you have purchased or sold a property and/or have any kind of high Clearance figures when transferring a Property, please contact the Municipal Debt Specialist to assist you.

We have a FREE RATES HELP DESK that you are most welcome to use.

We are able to assist with Municipal Clearance Figures on all kinds of Property Transfers, i.e. Deceased Estates, Liquidations / Sequestrations, Normal Sales, etc.


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