Tshwane aims to recover about R17bn owed by businesses, state entities

The City of Tshwane will target 48 bank accounts belonging to government entities who are among bad payers as it attempts to recoup some of the R17bn that it is owed for water and electricity

Mayor Randall Williams looks on as the municipality disconnects electricity at the Sheraton Pretoria Hotel due to R23 million owed to the City of Tshwane.
Mayor Randall Williams looks on as the municipality disconnects electricity at the Sheraton Pretoria Hotel due to R23 million owed to the City of Tshwane. (Thulani Mbele)

The City of Tshwane will target 48 bank accounts belonging to government entities who are among bad payers as it attempts to recoup some of the R17bn that it is owed for water and electricity. 

Several businesses and offices of government entities had their power disconnected on Tuesday as the city  intensified efforts to collect unpaid municipal services with residential properties being the next in line.

Homeowners owe about  R8bn while businesses in the capital owe the municipality more than R5bn and government departments and embassies owe more than R1.3bn, according to the municipality.

Tshwane spokesperson Selby Bokaba said the city is also “in the process of attaching bank accounts of certain entities in a concerted effort to recoup monies owed to the municipality, which monies would go a long way to fast-track projects aimed at improving service delivery”.

He said mayor Randall Williams and acting city manager Mmaseabata Mutlaneng will be accelerating the disconnection campaign on Thursday and continue into next week.

“This is to drive home the message that if you don’t pay for the services you consume, credit control measures would be implemented without fear or favour. The first phase of the revenue collection would focus on a number of big businesses, 100 suburbs and 48 government accounts,” Bokaba said.

He said the city's officials spearheading the campaign are being accompanied by Tshwane Metro Police Department (TMPD) officials to ensure their safety from possible harassment and intimidation.

Bokaba said their campaign would take a different dimension next week as the focus would move to complexes and estates before moving to other residential areas.

“The city is on high alert to respond swiftly and ruthlessly to customers that illegally reconnect electricity soon after being disconnected,” Bokaba said.

On Wednesday, premises belonging to the SA National Defence Force (SANDF) and Morning Star Express Hotel found themselves in the dark after their electricity was cut off.

The city's senior officials, led by Mutlaneng, disconnected services to customers whose accounts were in arrears for more than three months.

According to the municipality the SANDF owes more than R3m in property rates, Morning Star Express Hotel owes just over R500,000, Club Crossing R2.4m, Ditsong Museum R294,288.44, the Sheraton Hotel owes more than R23m and the department of higher education R2m. The department of water & sanitation was also mentioned as one of the departments in arrears. 

“The debt makes it difficult for the city to fulfil its obligation of delivering essential and basic services to its residents and customers,” Mutlaneng said. 

Williams said the city is “obligated in terms of the municipal legislation to recover money due to the city”.

“This is not something we can do voluntarily, we have an obligation to do it. We have been doing it for some time but we are now escalating it and turning it to operations and we have become visibly active,” Williams said.


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