Cape Town's Unlawful Tariffs Expose Deeper Failures in Municipal Accountability

The Department of Cooperative Governance and Traditional Affairs (Cogta) has admitted it has not engaged the City of Cape Town over the April court ruling that declared the city's fixed municipal tariffs unlawful. Minister Velenkosini Hlabisa confirmed this in a written reply to parliamentary questions from ANC MP Mzwanele Sokopo, revealing a troubling gap in oversight just as the city faces separate findings over its failure to deliver basic services to Black communities in Langa and Khayelitsha.

Hlabisa said municipalities must ensure their tariff policies comply with the Constitution, the Municipal Systems Act, the Water Services Act and all applicable regulations. But he placed the responsibility squarely on the municipal council itself, stating that adopting compliant tariff structures rests with the council concerned. The Western Cape High Court found the fixed charges for city-wide cleaning, water and sewerage in Cape Town's 2025/26 budget unlawful and invalid because they conflicted with legislation and the city's own tariff by-law.

What did the court ruling say about Cape Town's fixed tariffs?

The judgment targeted fixed charges that residents pay regardless of their actual water usage or service consumption. The court declared these charges unlawful insofar as they breached the Constitution and national legislation. The ruling means Cape Town must now align its tariff structures with the legal framework that governs municipal service charges.

Hlabisa pointed to the Revised Norms and Standards in Respect of Tariffs for Water Services, which permit municipalities to levy fixed charges only when those charges are directly linked to the fixed costs of providing the service. He stressed that revenue recovered through fixed charges must not exceed the fixed costs associated with water and sanitation services. Municipal councils, he added, are expected to review their tariff policies periodically and align them with court judgments and sector regulations.

Why is Cogta's lack of engagement with Cape Town a problem?

The minister's admission that Cogta has not engaged the City over the judgment raises serious questions about enforcement. If the national department responsible for cooperative governance does not actively pursue compliance, the burden falls on residents and civil society to hold the city accountable. This is particularly concerning given Cape Town's history of resisting oversight and its repeated failures to serve its poorest communities.

The department's passive approach stands in contrast to its own stated position. Hlabisa said the existing legislative framework provides clear guidance and that compliance with remedial action and court judgments remains an important measure of municipal accountability. Yet without proactive engagement, that accountability remains theoretical rather than real.

What did the Public Protector and Constitutional Court find against Cape Town?

ActionSA MP Dereleen James pressed Hlabisa on whether he considered Cape Town a model of good local governance. The minister declined to designate any municipality as such, noting that performance must be assessed against constitutional obligations relating to service delivery, accountability and the progressive realisation of rights.

The Public Protector's findings on basic services in Langa and Khayelitsha, combined with the Constitutional Court's ruling that the City and Western Cape Government failed to provide affordable, well-located housing, paint a stark picture. These are not minor administrative lapses. They represent systemic failures that disproportionately affect Black South Africans who continue to bear the legacy of apartheid spatial planning.

Hlabisa acknowledged that the findings identified areas where the City must strengthen compliance. He said the findings should be taken seriously and that remedial measures must be implemented. He framed these as opportunities to strengthen governance, accountability and public confidence in local government.

What lessons must municipalities learn from these rulings?

The minister outlined several lessons for municipalities across the country. He emphasised the need to proactively maintain and invest in critical infrastructure to ensure sustainable delivery of basic services. He also stressed that service-delivery complaints must be addressed timeously, supported by effective communication and community engagement mechanisms.

Municipal by-laws and land-use management measures must be effectively enforced to protect public infrastructure. Planning and implementation should account for the needs of vulnerable communities and support the progressive realisation of constitutional rights, including access to adequate housing and basic services. Finally, he urged stronger intergovernmental coordination with national and provincial departments, state entities and communities.

These are sound principles. But the gap between principle and practice remains wide. The City of Cape Town has repeatedly failed to meet these standards, and the national department's reluctance to intervene does little to inspire confidence that meaningful change will follow.

What happens next for Cape Town's tariff structures?

The City of Cape Town must now review its tariff policies to align with the court ruling. The council bears the responsibility for adopting compliant structures. Whether it does so voluntarily or requires further legal pressure remains to be seen.

For residents, particularly those in working-class and township communities, the stakes are high. Unlawful fixed charges hit those with limited incomes hardest. The court's ruling offers an opportunity to correct an injustice, but only if the city acts in good faith and the national government holds it accountable.

The Public Protector's report did acknowledge that Cape Town implemented interventions during the investigation, including infrastructure repairs, sanitation improvements and waste management measures. But these piecemeal efforts do not address the structural failures that continue to undermine service delivery in Black communities.

As Hlabisa noted, all municipalities must continuously improve their governance systems and responsiveness to community concerns. The question is whether Cape Town, with its long history of defiance and its comfortable relationship with privilege, will finally take those obligations seriously. The courts and oversight institutions have spoken. Now the city must listen.