City of Tshwane’s burgeoning debtor’s book

18 November 2021

City R1, 215,969,300.02 billion debtor’s book crippling service delivery

Tshwane’s burgeoning debtor’s book, mainly from government departments, embassies, and entities due to non-payment of municipal services, currently stands at a staggering R1, 215,969,300.02 billion. This debt makes it difficult for the City to fulfill its obligation of delivering essential and basic services to its residents and customers.

The City is currently disconnecting meters that are in arrears with the municipality on property rates, water, and electricity services.

The following measures are applicable to debtors with arrear accounts for municipal service charges in respect of which either water or electricity, or both services, and any other services that are supplied by the municipality:

A reminder that the previous account has not been paid on the due date is generated after the due date and is hand-delivered to the debtor‘s physical address. This reminder clearly states that 14 days are allowed for payment or arrangement for payment. In the absence of such a payment, service delivery to the debtor‘s consumption address will be restricted. The account of the debtor is debited with the cost of such a reminder at the approved municipal tariff. If prepaid meters for the vending of services have been installed, 60% of the purchase will be allocated towards the arrear services account.

Electricity disconnection (cut-off) and water restriction/disconnection.

Should a debtor not respond within the specified period stated in the reminder, the electricity supply to the debtor or consumer will be discontinued and the reason for the discontinuation supplied. The account of the debtor will be debited with the cost of the cut-off at the approved municipal tariffs;

• Should a debtor not respond to the electricity disconnection within the specified period, and should the debtor or consumer have an
  account that includes water consumption levies, water supply will be disconnected (restricted for residential consumers) at the consumption address. A notice to that effect will be left at the premises. The account of the debtor will be debited with the cost of this action at the approved municipal tariffs;
• Should there be no response within the 14-day period stipulated in the reminder and should the debtor have an account for water consumption levies but not for electricity, water will be disconnected (restricted for residential consumers) at the consumption address after 14 days. A notice to that effect will be left at the premises.
• If the amount for rates and taxes owed by the owner of the property is not paid after the specified due date, the municipality may recover the amount in whole or in part from a tenant or occupier of the property to the extent as provided for in Section 28 of the Property Rates Act, 2004. The municipality may recover an amount only after it has served a written notice on the tenant or occupier.

The services on such a property will be discontinued or restricted as provided by law.

Below is a breakdown of the City’s debtor’s book:

Tshwane will continue to intensify the enforcement of credit control to recoup the billions of rand it is owed by government departments, embassies, and entities to stabilize its finances and to enable it to render much-needed services. The City will also vigorously pursue residential and
business customers whose accounts are in arrears.

Issued by the Communication, Marketing, and Events Department.