Tshwane Rescinds Kleinfontein Settlement Order Amid Political Uproar

• The City of Tshwane Metropolitan Municipality plans to apply for the rescission of a recent settlement order with Kleinfontein Aandeleblok.
• The original settlement, granted in chambers by Acting Deputy Judge President Brenda Neukircher, reversed a land reclassification that had dramatically increased Kleinfontein's property rates.
• The Afrikaner-only township of Kleinfontein was developed without necessary approvals, leading to a long-standing dispute over its legal status and municipal liabilities.
• The settlement has become highly contentious, with the ANC seeking its invalidation and allegations of procedural irregularities raised by Councillor Lex Middelberg.
• Kleinfontein Aandeleblok had already begun implementing the settlement, including submitting a land-use application and paying outstanding rates.

The City of Tshwane's decision to rescind the Kleinfontein settlement order underscores the significant scrutiny that politically sensitive agreements, particularly those granted as consent orders in chambers, can face.

The City of Tshwane Metropolitan Municipality has announced its intention to seek the rescission of a recent settlement order involving Kleinfontein Aandeleblok (KA), the entity managing the controversial Afrikaner-only township. This development marks a significant U-turn for the metro, which had previously agreed to terms that reversed a contentious land reclassification. The original settlement, granted as a consent order in chambers by Acting Deputy Judge President Brenda Neukircher on August 4, aimed to resolve a protracted dispute over property rates.

Under the terms of the now-contested settlement, the reclassification of Kleinfontein's land was to be retrospectively reversed to 2024. This reclassification had previously led to a dramatic increase in the township's property rates accounts. The agreement stipulated that property rates would henceforth be levied based on the land's use, as if all developments had been legally authorised from the outset. In compliance with the settlement, KA confirmed its implementation, submitting an "extensive and comprehensive" land-use application to the metro by the August 31 deadline and settling outstanding rates owed to the municipality.

The settlement has ignited a fierce political and legal debate, drawing concern from Acting Deputy Judge President Brenda Neukircher herself regarding its potential impact on her reputation and that of the court. Judge Neukircher had met with legal representatives for both parties on August 17 to verify their clients' consent to the agreement. However, the African National Congress (ANC) has publicly called for the settlement to be declared invalid, highlighting its politically charged nature.

Willie Spies, who serves as KA's attorney and is also the Freedom Front Plus's (FF Plus) mayoral candidate for Tshwane, has vigorously defended the settlement. Spies recently became a Tshwane councillor following the defection of Grandi Theunissen from the DA to the Freedom Front Plus. Spies has also called for an investigation into Republican Conference of Tshwane councillor Lex Middelberg, who allegedly wrote directly to Judge Neukircher about the matter. Middelberg's communication, reportedly a letter to the court registrar copied to Neukircher, sought access to documents supporting the court order. In his letter, Middelberg expressed strong reservations, stating his belief that the consent order, granted in chambers, breached legislation on multiple grounds and would likely not have been approved in open court if opposed. He further suggested it was obtained hastily to circumvent anticipated opposition following "secret negotiations" between "sympathetic officials" and Kleinfontein representatives. Municipal manager Johann Mettler declined an interview request regarding the matter.

The roots of this dispute lie in the unique and unauthorized development of Kleinfontein, an Afrikaner-only township established in the late 1990s on farmland outside Pretoria. The township was developed without the necessary township establishment and development approvals, a situation the metro had largely failed to address for decades. Despite its unofficial status, Kleinfontein has grown significantly, now boasting over 600 houses, a shopping centre, a school, an old-age home, and a light industrial area, all constructed without official approval.

The current property rates challenge escalated in August 2024 when a group of disgruntled residents, members of the Kleinfontein Residents Association (KIV), secured a court order compelling the metro to enforce existing laws within the township. In response to this mandate, the City of Tshwane subsequently reclassified the land as "unauthorised use" for property-rating purposes. This reclassification led directly to the exponential increase in property rates that formed the basis of KA's legal challenge and the subsequent settlement. Disgruntled residents had previously sought to intervene in the court proceedings that led to the now-contested settlement.

The City of Tshwane's decision to rescind the Kleinfontein settlement order underscores the significant scrutiny that politically sensitive agreements, particularly those granted as consent orders in chambers, can face. This case highlights the potential for challenges to the procedural integrity and public interest implications of such judicial decisions. For legal professionals advising on property development or municipal rates in South Africa, this situation serves as a critical reminder of the fluctuating enforceability of settlement orders, especially when they involve politically charged issues or perceived procedural irregularities.

The ongoing Kleinfontein land reclassification challenge and the City of Tshwane property rates dispute demonstrate how municipal liabilities can remain volatile, exposing clients to unexpected shifts in legal and financial obligations. The controversy surrounding Judge Brenda Neukircher's consent order and the allegations of "secret negotiations" emphasize the need for transparency and robust public process in resolving disputes that have broad community and political ramifications. The outcome of the metro's rescission application will set an important precedent for how similar politically charged challenges to settlement orders are handled in the future.

Lawyers advising on property development or municipal rates in South Africa should note the potential for politically charged challenges to settlement orders, particularly those granted in chambers. This case highlights the scrutiny such orders may face regarding procedural integrity and public interest, impacting the enforceability of similar agreements and exposing clients to fluctuating municipal liabilities.

Source: Original reporting via Moneyweb