MALALANE – The Nkomazi Local Municipality claims that Leopard Creek Golf Estate owes it R64 million in rates and taxes. Yet it cannot explain how this amount was calculated.
The Valuation Appeals Board judgement in terms of which that amount was calculated, will be taken under appeal in the High Court. This was confirmed by municipality spokesman Mr Cyril Ripinga. “We received the documents on Wednesday,” he said.
The exclusive estate is home to an 18-hole golf course and plays host to the world’s top golfers during the annual Alfred Dunhill Championship. Some of the country’s wealthiest people – including members of the Rupert family – own stands in the estate on the border of the Kruger National Park.
The decision that Leopard Creek seeks to overturn, was made in July.
Read more on the judgement here: Valuations Appeal Board rejects Leopard Creek’s argument.
The board was presented with two valuation methods according to which Leopard Creek’s property rates and taxes could be calculated. The amount that the estate would have to pay, depended on the value of the property.
The estate said that only the golf course, clubhouse, facilities, bare dominium and the value of unsold shares in the estate, should be considered when rates and taxes are determined.
Its value, according to their calculations, was R906 million in July. The municipality contended that all the properties on the estate should be taken into account, which Ripinga said totalled R1,4 billion and would result in higher taxes.
“We used our board-approved method to calculate that Leopard Creek owes the municipality R64 million in rates and taxes,” he told Lowvelder.
According to Ripinga, the prime golf estate has been paying around R35 000 in property rates a year. “This amount comes from a deal they made with the Malelane Transitional Council in 1996. We do not acknowledge that contract, as the Nkomazi Local Municipality has since been established.” He added that the Municipal Property Rates Act of 2004 also influenced the payable rates and taxes. “Leopard Creek should be paying R800 000 a month,” he said.
A reliable source confirmed that the valuation appeal hearing had not yet been concluded, nor has any order been made pertaining to the exact amount the estate owes the municipality.
When asked how it arrived at the R800 000 and R64 million totals, Ripinga could not explain the method of calculation used. When pushed for an explanation, he said, “It is difficult to understand”.
Mr Frans Meyer, attorney for the municipality, replied to media queries with, “You will find it difficult to understand”.
Leopard Creek’s attorney, Mr Corrie Janse van Vuuren, said he had no comment as the matter was still sub judice.
