The City of Ekurhuleni’s task team remains unswerving and resolute in its crackdown on the culture of non-payment for municipal services among some businesses and government departments across the city.
Following a series of operations in several towns including Boksburg, the team, consisting of police and municipal officials, has this week shifted its focus to both non-paying businesses and government-owned properties in Nigel.
On November 1, the team cracked the whip on the Department of Correctional Services in Nigel, where water and electricity supplies were discontinued. The Nigel Correctional Centre owes the city R3.3m for services of water and electricity.
To avoid being left high and dry, defaulting customers are urged to take advantage of the city’s debt relief incentive scheme.
In August, the newly appointed finance MMC, Jongizizwe Dlabathi, told this publication that at the time consumers of municipal services owed the metro a combined debt of about R25b for rates and services, with households being the largest contributors.
Households collectively owe the city about R20b, while debt by businesses (including government departments) was sitting at over R5b.
To recoup the money and to strengthen the city’s financial position, the metro recently launched a programme dubbed Siyakhokha Siyathuthuka, a campaign aimed at recovering the billions of rand owed to the city.
Room for improvement
In the latest council meeting in Germiston, ACDP commended the finance MMC for his efforts to improve the city’s reserves, and for being transparent about the state of the city’s finance.
ACDP Clr Tambo Mokoena said: “The ACDP would like to thank our MMC of Finance for being open with the media about our low collection rate and for urging residents to pay.
“A budget is just numbers on paper, but operating income and cash on hand is real money in the bank. That is why a collection rate of 82,22% is totally unacceptable.
“For the city to work, we need at least 90% across the board – even in the Eskom areas, where only one-fifth of the money owed is being paid.
“Mr MMC, please deal with illegal connections, and please hire a new credit control service provider as soon as possible.”
The party said it’s also concerned about the city’s 45-day payment arrangement with Rand Water.
“Day Zero is fast approaching in Gauteng and Rand Water needs cash to keep our taps working. ERWAT also needs its R137m, which was due over two months ago.
“Our rivers are smelling more and more of human waste as a result of overloaded waste water treatment plants.
“SMMEs must also be paid by the end of this year for work done in the last financial year, as promised at the SMME Stakeholder Engagement in October.
“The ACDP trusts that allegations made at this meeting about officials demanding bribes for processing payments will be investigated as well.”
The city reiterated that revenue collection is essential to provide quality service delivery and to fulfil its financial obligations to service providers including Rand Water, Eskom and contractors.
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