Rustenburg Local Municipality v Mwenzi Service Station CC

The Rustenburg Local Municipality implemented a Rapid Transport Network (RRT) as part of a national public transport strategy. The project involved dedicating certain traffic lanes in the Rustenburg CBD exclusively to buses and constructing a central bus station (CBS) on the median of President Mbeki Drive. Mwenzi Service Station CC, operating a fuel service station at a major intersection affected by the project, alleged that the dedication of bus lanes amounted to a permanent street closure under s 67 of the Local Government Ordinance 17 of 1939, entitling it to compensation. Alternatively, it contended that the construction of the CBS was not permitted under the existing zoning of the road as an ‘existing public road’ in terms of the Town Planning and Townships Ordinance 15 of 1986 and the Rustenburg Land Use Management Scheme, and that rezoning was required.

The appeal and cross-appeal were dismissed with costs, save that paragraph (c) of the High Court’s order granting an interdict against implementation of the central bus station was set aside.

The case clarifies the distinction between permanent closure of streets to all traffic under s 67 of the Local Government Ordinance 17 of 1939 and permanent restriction of streets for a particular class of traffic under s 66. It also affirms the strict application of town planning schemes and zoning controls to municipal infrastructure projects, reinforcing the principle of legality in land use management by local authorities.