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SAPOA’s legal challenge against the 2025/26 Budget adopted by the City of Cape Town was heard in the Western Cape High Court from Tuesday 2 December to Thursday 4 December 2025. SAPOA is being represented by GVS Attorneys, and the matter is being heard by a full bench of three senior judges of the Western Cape High Court, consisting of Judge President Mabindla-Boqwana, Judge Savage and Judge La Grange.
The tariffs being challenged are the city-wide cleaning tariff, the basic water tariff, and the basic sewerage tariff, all three of which are calculated according to property value bands.
Neil Gopal, the CEO of SAPOA, states that “In essence, SAPOA argued that the City does not have the power, in terms of the Constitution and the applicable legislation, to raise fixed charges based on property value bands.”
Good Party, who sought leave to intervene, and the Cape Town Collective Ratepayers’ Association and SA First Forum, both of whom were admitted as friends of the court, all supported SAPOA’s views.
The City brought a counter-application, focusing on the relevant sections of the Municipal Systems Act, and sought to have it declared unconstitutional in the event that SAPOA succeeds with its challenge. The Minister for Co-operative Governance and Traditional Affairs, who opposed the counter-application, argued that these fixed charges are nothing other than a tax. The Minister also pointed out that any such a tax is to be approved by the Minister of Finance, who was not a party to this matter. The COGTA Minister supported SAPOA’s arguments.
The Court specifically asked the City’s counsel whether there are any legislative requirement that the City, or any other municipality for that matter, is required to “tighten its belt”. The City was unable to point out any such requirement, and merely argued that salaries, its biggest expense, are set at a national level.
Gopal proceed to say that “SAPOA and its members have no objection to the principle of subsidisation, or to pay its fair share of municipal service costs. The problem arises, however, if a municipality is given unbridled power and a blank cheque to do as it pleases. Municipalities across the country, including the City of Cape Town and others that regularly receive clean audits, must also be held accountable on the manner in which taxpayers’ money is spent.”
The Court reserved judgment, but no indication has been given as to when it may be expected. The Court did point out, however, that this is a complex matter, that requires careful adjudication, and that it is mindful of the effect that this judgment may have on other municipalities throughout the country.
Neil Gopal
SAPOA – Chief Executive Officer