City of Joburg threatens to cut services at Sandton City over R158m municipal debt

The municipality says there's over R38 billion in debt that is owed to the City, the biggest debt belonging to Sandton City with R158 million. | BEN CURTIS

The municipality says there's over R38 billion in debt that is owed to the City, the biggest debt belonging to Sandton City with R158 million. | BEN CURTIS

Published Feb 16, 2022

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Pretoria - After the City of Tshwane embarked on a robust campaign to collect millions from its debtors, the City of Joburg has also taken a bold step and threatened to cut services at the posh Sandton City, which they say owes R158 million.

Johannesburg mayor Mpho Phalatse, together with her entourage, invaded Sandton on Wednesday, and also went to Johannesburg’s premium hotel, Radisson Blu, and disconnected the water supply for non-payment of R14m.

The municipality said there was debt of more than R38bn owed to the City, the biggest debt belonging to Sandton City, which owed R158m.

Before embarking on the #BuyaMthetho campaign (Bring back the law), the City issued notices of termination of services and advised clients to settle the outstanding amount or make arrangements for payments.

“When we terminate services today, it should come as little to no surprise to the account holders, given that we have sent pre-termination notices in one form or another, warning them of their debt to the municipality and the promise to cut them off,” Phalatse said.

She added that the city acknowledges that the Covid-19 pandemic and the avoidable July unrest has had a direct effect on the finances of business and individuals.

“What we will not accept is when municipal account holders who have the means to pay, simply do not do so. On the other hand, we are re-opening the Debt Rehabilitation Programme to actively help residents who are genuinely struggling to pay their municipal bills, and we encourage our residents to apply for the programme.”

Phalatse added that the operations would continue throughout the city in the coming weeks.

Meanwhile in Tshwane, the municipality has collected over R300m owed to it from businesses, government departments, state owned companies and others.

City of Tshwane spokesperson Selby Bokaba said that numerous defaulters were making urgent payments and sending proof of payment.

The City has set a goal to continue the unprecedented, aggressive campaign until it makes a significant dent on the R17bn debt owed by customers.

NOTE: An earlier version of this story reported that the power supply had been cut. The City of Johannesburg has infact issued the mall with a letter demanding payment within 14 days.

IOL