18 December 2009

To all Members / Residents

SILVER LAKES HOMEOWNERS ASSOCIATION / KUNGWINI LOCAL MUNICIPALITY AND 3 OTHERS:  CASE NO. 70349/09

SETTLEMENT AGREEMENT REACHED AT SUPREME COURT AT 12:30 TODAY

We are delighted to inform you that a settlement agreement was reached and made an order of court today, whereby in terms thereof:

1. The Debtors Incentive Scheme has been extended until Friday 12 February 2010 viz, a 30% discount for all outstanding debt as reflected on the October 2009 accounts, subject to a 50% payment of the total outstanding debt as at October 2009 account for residential consumers and a settlement of the full outstanding amount as at the October 2009 account for business consumers (full details of the scheme were reflected in your CGM/AGM pack).

2. The rates payable for the years 2005/2006; 2006/2007 have been reduced per the table below with a 10% incentive discount:

 
FIN YEAR       RATES LEVIED       RATES TO BE COLLECTED AND RECOVERED
2004/2005    0,054 in the Rand    0,020c in the Rand
2005/2006    0,064 in the Rand    0,0576c in the Rand (10% incentive discount from rates levied)
2006/2007    0,065 in the Rand    0,0585c in the Rand (10% incentive discount from rates levied)

3. KLM further agreed in terms of the settlement that 30% of all future property rates collected in wards 1, 2 and 3 will be spent on projects back into these wards.

This agreement is seen as a resounding victory for us and ‘secures’ us the provision of services in future to a better extent than ever before.

Regards

DEREK LE ROUX
Chairman