Mr. Daniels asked Mr. Scott to take the meeting through the report.

Cllr Zondani said that the policy is not speaking for all communities of the City of Cape Town as some can afford the implementation of Special Ratings Areas. This is a special kind of privatization. He is also not sure that it is even in line with the Structures Act. He also said that Councillors are against the CIDs as it does not speak to all the community of the City because it is designed for people who can afford.

Mr Scott said that this was a Council decision and the System Act allows for the creation of this vehicle. They got in legal opinion in this regard. Special Rating Areas are Not for Profit Companies in terms of the Companies Act. The CIDs pays for additional services.

Cllr Makasi said that they will take it up in Council and these by laws do not apply to other areas.

Cllr Zondani said he would like to know which townships have these systems. Mr Scott said that there is no experience of Special Rating Areas in townships.

Cllr Zondani noted the report seconded by Cllr Bafo.