The PoKZN reported that it had been confronted with service delivery challenges as municipalities had been threatening to cut services on accounts of the non-payment of property rates. The PoKZN asked for an advice from the Committee as to who is liable for the interest that has been charged on the overdue rates. The PoKZN was of the view that it should be the National Department of Public Works (NDPW) since the interest charge was as a consequence of insufficient funding. The PoKZN argued that, that was due to the fact that the PoKZN assumed the responsibility of the payment of property rates from 1 April 2008; all outstanding debt prior to that date should be the responsibility of the NDPW. The PoKZN reported that this was brought to the attention of the NDPW and an indication with respect to the payment of all outstanding debt to municipalities prior to the devolution (1 April 2008) was awaited from the NDPW. However, the PoKZN said that, in the mean time, the debt was likely to accumulate interest expense. The PoKZN reported that an additional funding of R221 million has been requested from the National Department of Public Works and the National Treasury, but no response had been received as yet. Furthermore, the PoKZN reported that the issue of new properties remains a challenge as the current model does not provide for new properties.