The PoNC reported that they are experiencing challenges including that there were properties which are built on land that is owned by the municipality but the buildings, on the other hand, is owned by government. Once these properties were vested, the arrears and the recurrent costs for rates and taxes would be paid. The PoNC reported that 'sister' departments are not budgeting for rates and taxes for all new infrastructure developments. The PoNC reported that it was of the view that 'sister' departments should pay for new infrastructure. There are properties that were transferred from North West province that must also be vested. The PoNC concluded that, due to budget under-allocation, municipalities are charging interest on arrear accounts.