Joburg City ramps up efforts to collect money owed

As the City of Johannesburg embark on an aggressive campaign to collect money owed for services,  Diepsloot, Midrand, Soweto, Orange Farm and Lenasia have emerged as some of the areas which account for the bulk of the R38bn debt on its books. 

Last month the city ramped up its efforts to collect what is owed  through disconnecting water and electricity to businesses and homes in arrears. The metro said most of the debt owed was for water and sewer services.

City of Joburg spokesperson for group finance Stanley Maphologela said townships account for most of the city’s debt because households were hit hard by Covid-19.

“Regions F [inner city — Joburg CBD, Johannesburg south], G [Orange Farm, Lenasia, Protea], D [Soweto] and A [Diepsloot, Midrand, Ivory Park] are the most contributors in the city’s debtor’s book.  The municipal service accounting for most debt is water and sewer. The debt of these services is found across the city, predominantly in the townships,” said Maphologela.

Maphologela also said “overpopulation and non-maintenance of infrastructure (water pipes) within the properties, which timeously lead to internal leaks”, is also another reason why the townships owe the city a lot.

He said the city is aware that inequality, poverty and unemployment fuel non-payment of services. These he said have led to the city’s indigent database increasing by 10-20% every year.

The indigent database refers to a register of residents in the city who are declared financially poor to pay for services.

With a population of 5,7-million citizens and the unemployment rate at 37.3% Maphologela said more people in the city are deemed to be poor and require access to free basic services.

Additionally, he said, the increased tariffs for utilities such as electricity and water affect unemployed households and low-income earners, forcing them to access the indigent rebates.

Maphologela said besides unemployment and lack of affordability, delinquency and entitlement are some of the factors that lead to non-payment of services.

“Delinquency means affording residents who do not prioritise to pay the city regularly. If you can pay for DStv, you can pay your water and electricity bill. Then there is entitlement, which is the widespread unwillingness to pay that is due to an entitlement culture and the culture of non-payment inherited from yesteryears,”  he added.

Maphologela said customers are urged to ensure that they pay their municipal accounts by the due date stipulated on their municipal account to avoid credit control action and the hassle of being without any of the services the city offers.

He said the city has a debt rehabilitation programme and acknowledgment of debt (AOD) arrangement that residents can make use of when they feel the pinch of not affording services.

With the AOD, the customer signs it and agrees on a payment arrangement plan, where they would be able to pay a determined amount they can afford.  

To enrol into the programme, customers can send an e-mail to debtrehab@joburg.org.za or visit www.joburg.org.za to access application forms and apply online. Customers may also visit any of City of Joburg Revenue Customer Services Centres