About P10m in unpaid rates as GCC goes after defaulters
Tsaone Basimanebotlhe | Monday August 11, 2025 11:15
The Council has revealed that it is owed a staggering P10 million by ratepayers, an amount that has crippled its ability to provide essential services to residents.
As a result, it has now resolved to initiate legal action, including auctioning off properties belonging to long-standing defaulters.
In a recent interview, GCC town clerk, Daniel Katjinotjiwa, did not mince words. He confirmed that legal proceedings are imminent and that all necessary legal protocols are being followed to recover what is owed.
“There are 220 individuals and companies that have been in default for several years. These are not recent debts; we have exhausted all channels. Publishing their names is the last legal step required before we proceed with repossession and auctioning of their properties,” Katjinotjiwa said.
According to the town clerk, the unpaid rates are a direct obstacle to the Council’s operations. Without the funds, Katjinotjiwa said GCC struggles to carry out basic services such as pothole repairs, waste collection, and facility maintenance.
The cash crunch has begun to reflect on the streets, and now the council is determined to put an end to the financial bleeding, he said.
“The rates are not just figures on paper. They are what keep the city running. When property owners default, the entire city suffers from uncollected garbage piling up to deteriorating road infrastructure. “It’s a chain reaction,” Katjinotjiwa said.
In line with the Local Government (Valuation and Rating) Regulations of 2019, particularly Regulation 35, the Council has started publishing the names of the defaulters in the Government Gazette and widely circulated on national newspapers.
This is a legal requirement that must be fulfilled before any property repossession can be effected.
“The law gives us a clear roadmap. Once we have issued demand letters and the payments are still not made, we are obligated to go public. That’s what we have done, and what comes next is court action,” he explained.
He also said the regulations empower the Council to take the matter to court should payments remain outstanding even after publication.
“If the rates remain unpaid 14 days after the names have been published, we will approach the courts. Those individuals or entities will be liable not just for the owed amounts, but also for the full costs of the legal proceedings,” warned the town clerk.
Recently, when delivering the mayor’s speech during full council, Deputy Mayor Mankie Sekete said, “It will be improper not to inform you about the Council’s financial position. The 2025-2026 financial year's budget is P545 million, including a Revenue Support Grant (RSG) amounting to P375 million. It is worrisome that we still have cash flow problems. This, therefore, means a reduction in spending is imminent and strengthen our cash flow monitoring and priorities our activities.”
She also revealed that as of the end of May 2025, total expenditure stood at P73.4 million, which is 13.5% of the final budget. However, Sekete said the collection, including RSG, stood at P117 million.
The Deputy Mayor also said the Council is sitting on a P45 million overdraft, which is still not enough to cover the obligations, and it is anticipated that by the end of the financial year, a deficit might be realised due to high debt.
She said the valuation rating exercise is nearing completion. Currently, the valuation draft roll is under public scrutiny, which commenced on June 6, 2025, and will end on July 4, 2025.