KZN Public Works' strategy to tackle R2bn rates debt

KwaZulu-Natal Department of Public Works and Infrastructure MEC Martin Meyer outlined the department’s strategy for managing property rates.

KwaZulu-Natal Department of Public Works and Infrastructure (DPWI) MEC Martin Meyer is leading a push to address a substantial, long-standing rates debt that stands at nearly R2 billion.

Tabling the DPWI’s 2026/27 budget on Friday, Meyer said: “Each year this department services a rates bill that is just under R2bn (R1.9bn) for its properties located across 54 municipalities in KZN, yet our budget allocation is around R800 million per annum.”

Meyer said the department aims to resolve its rates debt through various measures, including the sale of property assets. Having already offloaded 81 properties and land parcels, the department is now targeting the disposal of 10 hectares (including two structures and one vacant plot) -additionally, 11 land allocations to various municipalities, 10 to non-profits, and the private sector for socioeconomic purposes, and five unutilised buildings for disposal.

He announced a R1.8bn allocation for a programme that facilitates integrated property management and accommodation services, encompassing the full property lifecycle, from acquisition and maintenance to disposal, and asset valuation, Fixed Asset Register maintenance, and property rate payments.