Staff Reporter
The Constitutional Court has ruled against the Govan Mbeki and Emalahleni Local Municipalities in their dispute with Swiss commodities giant Glencore, finding that municipalities cannot enforce property transfer embargoes through their by-laws.
This after the two municipalities blocked the transfer of 55 multimillion-rand properties between Glencore and other entities after they failed to comply to their by-laws.
The municipalities argued that these measures were essential for orderly development, while Glencore and other property owners challenged their constitutionality, claiming they violated their rights.
The case centered on by-laws that required property owners to prove compliance with municipal planning regulations before transferring property.
Lower courts had already declared the by-laws invalid, and the Constitutional Court upheld these rulings.
It clarified that councils lack the legal authority to impose such embargoes, giving property developers greater certainty about local governments’ powers.
The court also rejected the municipalities’ demands for additional compliance documents, such as occupancy certificates and affidavits for paid development charges.
The ruling also stressed that existing laws sufficiently protect municipal interests without overstepping constitutional boundaries.
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