Nkomazi Local Municipality v The Valuation Appeal Board for the District of Ehlanzeni and Others

The Nkomazi Local Municipality levied property rates under the Local Government: Municipal Property Rates Act 6 of 2004 (MPRA) on a large, high-end golf estate owned by Leopard Creek Share Block Limited. The property’s valuation fluctuated significantly over successive valuation rolls, leading to objections and appeals. In the 2018 general valuation roll, the property was valued at R1.3 billion. Leopard Creek objected unsuccessfully and appealed to the Valuation Appeal Board (VAB). During the appeal, extensive expert evidence was led by Leopard Creek, while the Municipality relied on its own valuer. The VAB dismissed the appeal, accepted the Municipality’s valuation method, and failed to meaningfully assess or give reasons for rejecting Leopard Creek’s expert evidence. Leopard Creek successfully reviewed the VAB’s decision in the High Court, which set it aside and remitted the matter. The Municipality appealed to the Supreme Court of Appeal.

The appeal was dismissed with costs, including the costs of two counsel. The High Court’s order reviewing and setting aside the VAB’s decision and remitting the matter to a differently constituted VAB stood.

The case reinforces the duty of administrative tribunals, including specialist bodies like Valuation Appeal Boards, to give adequate reasons for their decisions. It confirms that failure to engage with and explain the rejection of expert evidence renders a decision irrational and reviewable under PAJA. The judgment also affirms limits on judicial substitution in administrative-law reviews, underscoring separation of powers.