New homeowners not liable for historical debt

The precedent-setting ruling gives relief to home and business owners, who have been saddled with years of historical municipal debt – dating back to 20 years – and have been denied municipal services until the debt had been paid. The outstanding debt includes water, electricity, rates and taxes charges associated with a property.
In a ruling majority written by Justice Edwin Cameron, the court found that upon transfer of a property, a new owner is not liable for old municipal debt. The court upheld a ruling by the high court in Pretoria in November last year – mainly the part stipulating that the liability of the old municipal debt rests with the previous owner.
Metropolitan municipalities of Tshwane and Ekurhuleni brought an application at the Constitutional Court to appeal the Pretoria High Court ruling.
Peter Livanos, managing director of municipal debt specialist New Ventures, which has represented several property owners who have carried the liability for the historical debt, was a respondent in the matter. He joins us this evening with his attorney Gary Ross. Unfortunately, the City of Cape Town could not join us tonight as their officials are still studying the judgment…
Guest: Peter Livanos
Position: managing director of municipal debt specialist New Ventures

Guest: Gary Ross
Position: attorney