Casual workers remain on strike as they demand being absorbed into the waste management entity as permanent employees.
Snowballing debts and disgruntled workers are forcing trash to rot in Johannesburg’s streets.
Refuse bins have gone days, sometimes weeks, without being collected, causing a frustrating stink throughout the city’s suburbs.
Information shared through council channels highlighted a long list of unpaid contractors, as the city confirmed casual workers had downed tools.
Over 70 businesses owed
In a recent response to a written question submitted in council by Democratic Alliance shadow MMC for environment and infrastructure services Tyrell Meyers, Pikitup confirmed the scale of their unpaid obligations.
“As of 30 May, Pikitup owed contractors and suppliers a total amount of R1.330 billion,” the response reads.
Pikitup’s response listed at least 71 businesses that were owed payment, while explaining the various services that Pikitup outsourced.
“Pikitup engages a range of service providers across its operations, including suppliers responsible for fleet maintenance and repairs, personal protective equipment, capital infrastructure projects, landfill operations and the supply of waste management equipment and bins,” the entity’s response states.
However, the entity’s response confirmed that it had R2.1 billion in its sweeping account.
DA member of parliament Stephen Moore in May accused the municipality of “stonewalling” his attempts have the city explain to the Information Regulator why it was using a sweeping arrangement – the moving of funds between linked accounts – to fund unrelated entities.
“This raises serious concerns that the city’s sweeping arrangement is being used to plug Johannesburg’s wider cash crisis,” stated Moore.
The municipality was contacted on Monday to explain Pikitup’s financial situation, and its response will be added if forthcoming.
Contractors must be paid
The Johannesburg municipality last week confirmed that casual workers tied to its ad hoc fleet were refusing to work until they were absorbed into Pikitup as permanent workers.
“The entity assures residents that a waste collection recovery plan will be implemented as soon as conditions permit to clear backlogs and to restore normal waste collection services,” Pikitup stated.
Meyers explained that the waste management body was in a precarious position, unable to pay contractors or back-up staff.
“It is really an untenable situation to be in at the moment. They will need to pay contractors and service providers before they consider addressing the casual worker’s expectations,” Meyers told The Citizen.
He added that a solution was rooted in financial stability, which could be best achieved by ring-fencing revenue and honouring debt payments.
“The first thing they are going to have to do is to start paying contractors. You need the contractors to be paid to ensure you can run essential services,” Meyers concluded.