eThekwini Municipality v Ingonyama Trust

The Ingonyama Trust was established shortly before the interim Constitution came into force to hold and administer land previously reserved for Africans under apartheid legislation, for the benefit of certain communities in KwaZulu-Natal. Some of this land falls within the jurisdiction of eThekwini Municipality. The Municipality sought a declaratory order that the Trust’s land was rateable for the period May 1996 to June 2005, in order to levy municipal rates retrospectively. The Trust opposed the application, arguing that the land constituted state property held in trust for inhabitants of the municipal area and was therefore exempt from rates under section 3(3)(a) of the Rating of State Property Act 79 of 1984. The High Court held the land was rateable; the Supreme Court of Appeal overturned that decision, finding the land exempt. The Municipality sought leave to appeal to the Constitutional Court, together with condonation for late filing.

Condonation for the late filing of the application for leave to appeal was refused, and leave to appeal was denied. The order of the Supreme Court of Appeal, holding that the Ingonyama Trust land was not rateable, remained in force.

The case clarifies the constitutional status of the Ingonyama Trust as an organ of state and confirms that land it administers is state property for purposes of municipal rating legislation. It provides authoritative interpretation of section 3(3)(a) of the Rating of State Property Act and limits municipalities’ ability to levy rates on trust land held for community benefit. The judgment also reinforces strict compliance with Constitutional Court rules and underscores that condonation will be refused where explanations for delay are inadequate.