No date has been stipulated. We have been doing some of the Councils work for more than 60 years. Consequently we took a date of December 2002, that is a year before the Mkhize sale and we enclose herewith a list marked A which deals with the following : -

This is reflected above. We need to point out that what has been replied to above refers to files that have been closed. There are also files which are still current. On those we enclose a computer printout whish speaks for itself, marked B.

3. PROPERTIES AUCTIONED

From the time of Mr Mkhize to date. We attach a letter which shows which properties were sold and also those attached but were the attachment was withdrawn and the sale not proceeded with marked C.

a. The rates year run from the 1^st of July to the 30^th of June the following year;

b. Rates can be paid monthly or it can be paid in a lump sum but needs to be settled in full by not later than the 31^st of March , that is 9 months after the financial year had started. This means that for 9 months although rates are due no interest is being levied and no costs are being levied.

c. Defaulters who have not paid by the 31^st of March then get various letters, notices and demands from the council stating what interest will be levied etc and it is only when there has been no satisfactory response to the above that the matters are handed over to the attorneys. At this stage it is normally very close to the date by which the rates for the following year will start to accrue.

d. Rates handed over are to be collected by us within 3 to 6 months. If debtors pay there is no problem. It debtors need installments we can accommodate them up to 3 months. If debtors need more time than this we complete a form "Acknowledgement of Debt and offer to pay", a copy of which we enclose and which speaks for itself. This is then referred to client to make a decision on the merit as to what we are to do. We then follow instructions.

e. If payments are not forthcoming then usually there is an attachment of movables and eventually an attachment of immovable property.

f. Throughout the debtor is served by the sheriff of the court with court process and very often we find that debtors call to make arrangements when they see that their property is likely to be sold. Sales are also advertised not only in the government gazette but also in the local Greytown newspaper.

g. When no satisfactory arrangements are made the sale proceeds. We need to point out that up to the minute of the sale, a sale can be cancelled provided that satisfactory arrangements had been made.

h. In the Mkhize case no arrangements were made in connection with this and various others claims for other properties were Mr Mkhize, the owner of three properties by title deed and a fourth by purchase but not yet by registration, had made no payments on any of these properties until legal action had been started. The writer specifically recalls Mr Mkhize telling you that in the Moolla case he had to pay some R10000.00 of arrear rates on behalf of Mr Moolla. This is not true but the writer was not given an opportunity to reply to this, was told that he was there to answer questions and that there would be time allowed at the end of the meeting to speak up. As you know this did not happen. We enclose herewith a copy of a letter marked D reflecting the transfer costs from Mr Moolla to Mr Mkhize. You will note that there was no R10 000.00 arrear rates paid by Mr Mkhize. Mr Mkhize paid the purchase price and the transfer costs, but no R10 000.00 arrear rates.