Umgababa Shell Ultra City rates debt still not settled
Ingonyama Trust said it was not responsible for the debt as the land on which the service stations are built is administered by the Umnini Trust Traditional Authority.
THE Ingonyama Trust Board (ITB) has decided to review its entire Asset register to clarify some issues following the revelation that its two properties in Umgababa that are leased to Shell Ultra City owe millions in unpaid rates.
Also read: Umgababa Shell Ultra City properties said to owe millions in rates
This came out of the minutes of the recently held eThekwini Municipality’s full council meeting, indicating an ongoing struggle by the municipality to have the long-standing rates debt settled. The two properties are among several around the metro that ITB owes rates for. At the meeting, it was stated that both Shell Ultra City service stations owe a combined R34.5m for unpaid municipal services. The amount also includes interest. This is up from R33.9m when the SUN broke the story in March.
SUN’s questions to ITB over the debt have gone unanswered, but at the council meeting, it was revealed that the entity has requested an extension of time to determine the amount payable to the municipality as per their communication dated November 2025.
The ITB administers communal land in the province. It is held in trust by the Zulu King for the material benefit, welfare, and social well-being of the tribes and communities residing on it. About 33% of all land in the province falls under ITB.
In March, ITB said it was not responsible for the debt as the land on which the service stations are built is administered by the Umnini Trust Traditional Authority, which benefits directly from the leases it signed with Shell Downstream South Africa. The Umnini Trust Traditional Authority oversees the tribal land in Umgababa on behalf of the ITB.
Also read: R10 billion earmarked for eThekwini infrastructure
The secretary of the Umnini Community Trust, an entity of the Umnini Trust Traditional Authority, Sipho Msimango, said he was not aware of any debt owed to eThekwini. He also said they have not received any communication from eThekwini or ITB regarding the matter.
The council minutes indicate that the matter was referred to eThekwini’s legal department, and it is confirmed that ITB remains liable as the owners of the property.
“It was agreed that both legal teams from ITB and the municipality should engage and find common ground to resolve this issue,” read the minutes.
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