The City of Johannesburg is going on a drive to cut the water supply and electricity connections of large users who collectively owe the city more than R1-billion in unpaid municipal services.
Director for communications and stakeholder engagement in the group finance department, Kgamanyane Maphologela, said the city’s cut-off drive is to reduce the more than R52-billion debt the city has.
Hospital, university among targeted defaulters
Maphologela said the large users targeted are massive residential estates, investment firms, hospitals, car dealerships, and a university, among others.
“The City of Johannesburg is today (Wednesday), April 18, 2024, cutting water supply and electricity connection to large users. These collectively … owe more than R1-billion in municipal services as part of its aggressive credit control campaign.
“Then city has a growing and unsustainable debt of more than R52-billion. The campaign will target massive residential estates and investment firms. Also hospitals, car dealerships, and a university, among others. These are part of the city’s growing list of defaulters,” said Maphologela.
The city’s group chief financial officer, Tebogo Moraka, said the city is acting tough against perpetual defaulters. These are running away from their responsibility of paying what is due, he said.
Aggressive credit control campaign
“The city is going full scale on an aggressive credit control campaign citywide. It is targeting specifically those customers who are hiding from paying the city.
“The message is clear: the city is coming after all perpetual defaulters who don’t want to engage the city about what they owe,” said Moraka.
Moraka said the city is using all resources available to go after enormous debt as part of its credit control campaign. This includes cutting off services, [red-listing] defaulters and taking them to court to recover the monies owed. Also selling them in execution.
Meanwhile, on Monday, the Johannesburg High Court handed down a judgement in favour of the city. This after the court dismissed an appeal against two upmarket residential estates. These were refusing to pay commercial or business tariffs even though they ran a restaurant on the premises.
Court victory
“We are pleased to see that even the courts do agree with the city that the rule of law needs to be returned to the city,” said Moraka.
Maphologela said all property owners who are struggling to service their accounts for various reasons, should approach the City. This in order to avoid being cut off by making payment arrangement and signing an acknowledgement of debt.
