Investigation into Inflated Property Values @KASIBCNEWS

The Democratic Alliance (DA) in Mpumalanga has written to the MEC for Cooperative Governance and Traditional Affairs (CoGTA), Speedy Mashilo, to raise serious concerns over disturbing allegations of fraudulent practices by municipalities relating to the levying of rates and taxes on government properties. 

This follows correspondence sent on 6 April 2025 to the Department of Agriculture, Rural Development, Land and Environmental Affairs, as well as the Department of Public Works, Roads, and Transport, regarding their substantial outstanding debts to the Bushbuckridge Local Municipality. 

It has come to light that certain municipalities in Mpumalanga are allegedly inflating the size and value of properties to intentionally overcharge rates and taxes. In contrast, there are also allegations that properties owned by certain government officials are reportedly being deliberately undervalued, resulting in reduced municipal charges for those individuals. These practices, if confirmed, constitute a gross abuse of public trust, a breach of financial integrity, and a violation of key legislative frameworks. 

The implications of these allegations are severe. They not only compromise the credibility of municipal budgets, but also point to an alarming trend of governance failures that contribute to the chronic service delivery challenges across Mpumalanga. Fraudulent valuations distort municipal revenue collection and create a false impression of financial stability, thereby undermining both accountability and sustainable development. 

If proven, these allegations would represent an unprecedented violation of public trust, an infringement of the principles of public good governance, and an infringement of several important laws, including the Municipal Finance Management Act (MFMA), the Local Government: Municipal Property Rates Act (MPRA), the Public Finance Management Act (PFMA), and the Prevention and Combating of Corrupt Activities Act. 

Considering these serious concerns, the DA calls on the MEC to: 

Launch an urgent and comprehensive investigation into the alleged fraudulent practices in the municipalities. 

Investigate the alleged misconduct or irregularities. 

If these allegations prove to be true, ensure accountability through disciplinary or legal action against all those found responsible. 

Put in place robust preventative measures to ensure greater oversight and transparency in the calculation and levying of rates and taxes. 

The people of Mpumalanga deserve a government that is honest, fair, and committed to equitable service delivery. These allegations cannot be ignored. The DA will also escalate this matter to the Office of the Premier, the Auditor-General, and Provincial Treasury to ensure full transparency and accountability. 

We urge the MEC to treat this matter with the urgency and seriousness it demands, and we await regular updates on the progress of the investigation.