LUXURY LIVING, ILLICIT CONNECTIONS! Inside the Waterfall City Water Scandal That's Rocking South Africa's High Society – Who's Behind the Thievery?

Johannesburg – Three exclusive estates within Waterfall City, the opulent residential enclave favoured by South Africa's elite, are at the centre of a high-stakes legal battle with the City of Johannesburg Metropolitan Municipality over allegations of illegal water connections. The municipality claims these connections have cost it millions of rands in unpaid services, exposing a potential underbelly to the city known for housing the R5.7-billion Mall of Africa and attracting A-list celebrities and influential figures.

The estates in question – Waterfall Country Estate, Waterfall Schools, and Waterfall Fields – are accused of constructing properties and connecting them to the water supply without authorised metering devices from Johannesburg Water, the municipality's subsidiary. Instead of immediately disconnecting the properties and pursuing criminal charges, the municipality opted to impose fines. However, the property owners have taken the matter to the Joburg High Court, challenging the legality of these fines.

In court papers filed in June 2023, the applicants are seeking a court order declaring the fines imposed on them for the alleged illegal water connections unlawful. The municipality, in its answering affidavit filed in November 2023, stated that Waterfall Country Estate, Waterfall Schools, and Waterfall Fields employed private individuals to install and connect water meters to Johannesburg Water's infrastructure without its consent or a formal application.

The municipality's investigation, conducted in July 2018, revealed the extent of the alleged illegal connections. According to the affidavit, Waterfall Country Estate, which owns the property known as The Sheds, had 72 units without authorised Johannesburg Water metering devices.

The municipality also stated that Waterfall Schools, which owns the property known as Curro Schools, was in the process of constructing a school at the property without an authorised Joburg Water metering device.

“There was an illegal water meter connection to the property with the school premises connected thereto. This meter connection was illegal as there was no application requesting a water supply connection to Johannesburg Water, and furthermore, there was no legitimate water meter that was installed by Johannesburg Water… A meter found at the property was illegally connected to the Johannesburg Water reticulation system,” the municipality stated in its affidavit.

Furthermore, the municipality alleged that Waterfall Fields, which owns properties known as The Polofields and Kikuyu, erected units without authorised Johannesburg Water metering devices.

As a result of these alleged illegal connections, the city issued substantial fines to Waterfall Country Estate, Waterfall Schools, and Waterfall Fields. Waterfall Country Estate was reportedly fined over R1-million for water consumption, while Waterfall Schools and Waterfall Fields were fined more than R2-million and R7-million, respectively, in May 2018.

However, the applicants argue that the municipality's fines do not comply with Section 111 of the City of Johannesburg Metropolitan Municipality water services by-laws and are therefore unlawful. They maintain that their application is not challenging the fact of the illegal water connections, but rather the legality of the fines imposed.

The applicants claim they engaged a certain individual to arrange for water connections to the respective properties, alleging that "this person acted in concert with a complicit ex-official of the City of Joburg. It is admitted that it was discovered months, if not years afterwards that the connections made by the private person were unlawful…the once illegal meter was regularised and complied with the respondents’ requirement."

The applicants further argue that "to the extent that the amounts charged in the notices are for service delivery by the first respondent, and have not been prescribed, such amounts have been calculated incorrectly by the first respondent and must be calculated with reference to the applicable annual tariff published by the first respondent".

Specifically, the applicants contend that the water consumption amount of over R4.3-million added to the June 2018 municipal account of Curro School Waterfall is unlawful because "such charges have been calculated and determined by the municipality with reference to the incorrect tariff".

The applicants have requested the court to order the municipality to correct their municipal accounts within 30 days of the court order and to grant an interdictory relief, barring the municipality and Joburg Water from taking any debt-recovery or remedial action in respect of the amounts imposed in the notices.

The matter is scheduled for oral arguments in the Johannesburg High Court on April 30.

The scandal comes despite Waterfall City's reputation for excellence, having been awarded Best International Mixed-use Development at the annual World’s Best International Property Awards in February 2023. It was the fifth time in six years that Waterfall City had won the award, beating nominees from around the globe. The awards criteria included design layout and quality, architecture, services and security, innovation, originality, marketing, and commitment to sustainability.