Cape Town - Punitive water charges have led to the City raking in close to a R1 billion more than what it budgeted for, sparking a
massive outcry as the city’s poorest residents are still slapped with high bills.
Service charges for water revenue amounts to R938 million over recovery, while sanitation revenue is R188m over its planned budget.
The over recovery amount, which is more than a R1bn, is included in the final quarterly financial report of the City for 2017/18.
According to the Municipal Finance Management Act, mayor Patricia de Lille must, within 30 days of the end of each quarter, submit a report to the council on the implementation of the budget and the financial state of the City.
According to De Lille’s report, the over recovery is due to the current “billed revenue” that is reflecting an over recovery against the budget provision.
“Punitive tariffs to prevent the City from running out of water were introduced
during the financial year. As some consumers are still using water above restriction levels, the punitive tariffs have escalated the ‘billed revenue’. It must, however, be emphasised that this amount is not cash-backed. High consumption by non-paying customers will mean that the over recovery on ‘billed revenue’ will be offset by the over expenditure,” the report said.
There was also a R357m over recovery on traffic fines, penalties and forfeits.
“The over recovery is mainly against traffic fines and traffic fines accruals, due to more-than-planned fines issued and paid to date, as well as forfeits and unclaimed monies due to clearing of long-outstanding credits which are older than three years from debtors’ accounts, like unclaimed down payments and refunds,” the report said.
Sandra Dickson, founder of the action group Stop COCT, said she was still receiving accounts from residents with high municipal bills.
Dickson was also part of a march to the City’s headquarters this weekend demanding that high bills of pensioners be scrapped.
“We are sitting with a massive problem. The poorest of the poor are being slapped with high bills, these people are suffering. We have complaints from all over the City and I know that people can’t cope. But when I look at these figures, one can see why people are suffering the way they are,” she said.
“We will not be taking this lying down.
“We have already approached national institutions to force them to act on the City,” she said.
Faiez Jacobs, ANC provincial secretary, said the ANC legal team was collating affidavits from several aggrieved ratepayers.
“Once the legal papers are completed over the next few weeks, we will assist these ratepayers in approaching the High Court for the appropriate relief, Jacobs said” These aggrieved ratepayers first had to exhaust all the City’s internal processes and were not assisted, despite their objections to the incorrect billing and affordability disputes.
OVERCHARGED: Margaret Mackay, 58, is one of many Bonteheuwel residents handed extremely high water bills.
The ANC wants pensioners and poor households who have been saddled with high bills to be able to litigate against unfair tariff bills and faulty water meter management devices in the High Court.
The Cape Argus understands that the ANC wants affidavits from at least 20 aggrieved residents before heading to court.
Grant Haskin, ACDP councillor, said water restrictions needed to be relaxed so that residents could afford to use water.
“But, of course, underspent is the norm for this department for the last 10 years at least. The City underspent its way into this water crisis and now can’t spend its way out of it,” he said.
@JasonFelix