The High Court of South Africa’s Gauteng Division has overturned unlawful penalties exceeding R10 million imposed on Waterfall Estate over allegedly unauthorised water meter installations.
At the heart of the dispute was Johannesburg Water’s imposition of financial penalties without proper procedural justification. The court found that the compliance notices issued lacked legal clarity, violating the prescribed enforcement measures under Section 111 of the Water Services By-laws.
Judge Stuart Wilson underscored that municipal penalties cannot be arbitrarily enforced without due process, ruling the fines to be ultra vires, beyond the City’s legal authority.
Waterfall Estate, represented by Waterfall Country Estate (Pty) Ltd, Waterfall Schools (Pty) Ltd, and Waterfall Fields (Pty) Ltd, challenged the legality of the fines. The High Court found that Johannesburg Water lacked the legal authority to enforce these penalties, with Judge Stuart Wilson determining that the designated official responsible for issuing the fines did not have the necessary authorisation.
Unlawful penalties
Under Section 111 of the Water Services By-laws, compliance notices must clearly outline corrective steps. However, in this case, the notices failed to indicate any necessary action from Waterfall Estate, rendering the penalties ultra vires, beyond legal authority.
In addition to ruling against the penalties, Judge Wilson dismissed Johannesburg Water’s last-minute application for postponement. The court emphasised that the municipal entity failed to justify urgency and had insufficient preparation for the hearing.
The ruling not only eliminates penalties but also mandates Johannesburg Water to correct municipal accounts within 30 days. Additionally, the City is prohibited from disconnecting services due to the disputed fines, safeguarding the operational stability of Waterfall Estate.
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