The City of Johannesburg stated that unpaid water and electricity accounts would result in disconnections this December.
Johannesburg’s municipality has threatened service disconnections throughout the festive season as it attempts to chip away at the mountain of debt owed to entities and contractors.
Water and electricity debts are the most concerning, with a lack of revenue collection being cited as the reason for City Power and Johannesburg Water’s inability to pay contractors.
Johannesburg Mayor Dada Morero confirmed in late October that City Power owed R10.2 billion, while Johannesburg Water owes Rand Water roughly R850 million.
CoJ warns residents
The city’s Group Finance Department Director of Customer Communications Kgamanyane Maphologela on Monday warned residents about neglecting their municipal accounts this festive season.
He said that failing to prioritise paying accounts would be a “mistake” that could result in costly disconnections.
“Over the years, we have observed that a large number forget to settle their municipal accounts before travelling,” says Maphologela.
“[However], our credit control procedures remain active throughout the festive season,” he added.
Level 3 disconnections will be applicable for “habitual defaulters”, which involves the removal of cables, meters and other critical infrastructure.
Reconnections involve a fresh service application process with the resident liable for the costs involved.
“We understand that many families feel the pinch during this time of the year, but we urge customers to honour their municipal obligations.
“We would hate to see anyone without access to water or power simply because of missed payments,” stated Maphologela.
Billions owed to contractors
WaterCan recently stated that Johannesburg Water’s debt had exceeded R1 billion as of the end of October.
This was an increase from R660 million at the end of September, which accounted for 203 suppliers sitting with unpaid invoices.
“The result has been contractors downing tools, project extensions, and interest costs piling up, as was the case with delays in the new Brixton reservoir and tower,” stated WaterCan Executive Director Ferrial Adam.
City Power’s head office in Reuven was also the scene of a protest in October by contractors who had not been paid for work done.
The entity confirmed that R1.2 billion was owed to contractors, and that R56 million was scheduled for release in October.
Sweeping arrangement
The debts forced the municipality to implement a system that consolidated all entity accounts into one balance sheet to “manage cash flow”.
This “sweeping arrangement” has drawn criticism from WaterCan and the administration’s opposition in council.
“The city is prioritising administrative efficiency over people’s lives. We are facing a perfect storm of decaying infrastructure, poor financial management, and political leaders who are both unresponsive and uncaring toward residents living without basic water services,” stated Adam.
The DA stated that they were still awaiting requests for details on the sweeping arrangement, which had been pending for months, and said it was having a negative impact on Johannesburg Water.
“The sweeping arrangement policy may be legal, but that does not make it right,” stated DA spokesperson for water and sanitation Stephen Moore.
“The mayor and council are well equipped to ring fence funds for Johannesburg Water via a resolution, but there is no political will to do so,” he concluded.
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