MUNICIPAL CLEARANCE CERTIFICATES – MAY THE AMOUNT CLAIMED INCLUDE INTEREST ON ARREARS?
Moatshi v City of Tshwane Metropolitan Municipality (45183/2018) [2024] ZAGPPHC 331 (11 April 2024)
This judgment investigated whether section 118(1) of the Local Government: Municipal Systems Act allows a municipality to include interest on overdue amounts when it determines the amount payable for purposes of issuing a clearance certificate in a property transfer. The wording of the section does not speak of interest, but – as the municipality argued here – it is mandated by the Constitution to collect debts to ensure its optimal functioning.