Govan Mbeki Local Municipality and Another v Glencore Operations South Africa (Pty) Ltd and Others

Several local municipalities, including Govan Mbeki Local Municipality and Emalahleni Local Municipality, promulgated spatial planning and land-use management by-laws that required municipal certification before the Registrar of Deeds could register the transfer of immovable property. The certification was contingent on compliance with various municipal requirements, including payment of charges, compliance with land-use schemes, and fulfilment of development conditions. Mining and property companies intending to transfer properties within these municipalities challenged the validity of the relevant by-law provisions, arguing that they imposed an embargo on property transfers, exceeded municipal legislative competence, conflicted with national legislation (notably the Spatial Planning and Land Use Management Act 16 of 2013 and the Local Government: Municipal Systems Act 32 of 2000), and resulted in an arbitrary deprivation of property.

The appeals by the municipalities were dismissed with costs. The cross-appeals by the respondents were upheld with costs. Paragraph 4 of the high court’s order suspending the declaration of invalidity was set aside, resulting in the immediate invalidity of the impugned by-law provisions.

This case clarifies the limits of municipal legislative competence under the Constitution, particularly in relation to spatial planning and land-use management. It confirms that municipalities may not regulate or restrict the registration of property transfers through by-laws, as this falls within the domain of national legislation. The judgment reinforces the role of SPLUMA as framework legislation and underscores the principles of cooperative government and constitutional allocation of powers.