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‘Slow-motion’ rates and taxes business and ratepayers boycott against ELM

A business and ratepayers coalition claiming 900 business members and 12 000 residents has announced a rates and taxes boycott against the Emfuleni Local Municipality (ELM) should President Cyril Ramaphosa not meet their demand to dissolve the council.

The boycott coalition comprises the Vereeniging Business Cooperation (VBC), the Emfuleni Ratepayer’s Association (Erpa) and the Golden Triangle Chamber of Commerce (GTCoC) which have cited massive service delivery failures and corruption for the action.

Days after a boycott coalition announcement on Monday this week, confusion still reigned as to whether the action would include boycotting water and electricity payments or whether ELM would adopt a hard-line “credit control measures will apply” and cut consumers off.

In response, ELM condemned the boycott and slammed the three organisations as misleading the public and failing to contribute to finding solutions to service delivery and corruption issues they were  already discussing with the municipality.

Collectively, businesses and residents owe at least R2 billion to the municipality even before any boycott.

The proposed boycott was merely an attempt to destabilise ELM and mislead the public and amounted to anarchy and rebellion, said ELM spokesperson Makhosonke Sangweni.

As with an earlier failed attempt to achieve a vote of no confidence against ELM’s ANC-led coalition,  the proposed boycott was business being used to meddle for political motives by white right-wing elements, said multiple political sources.

ELM sources said any such boycott would hurt business the most as less money would be available for service delivery.

“In the final analysis business cannot work without ELM but ELM can continue without those businesses and residents foolish enough to have their power cut off,” said one highly-placed ANC source.

But the boycott coalition pulled its punches by urging those residents and businesses who  participate to still pay ELM when confronted by a letter of demand by the municipality – the objective apparently being to bring pressure to bear on ELM by delaying payments..

Property taxes should also continue to be paid said the coalition. The boycott coalition did not say  whether the proposed boycott would extend to electricity and water payments, which provide most of ELM’s revenue stream.

However, steel giant ArcelorMittal SA, with its headquarters in Vanderbijlpark, indicated it would not be participating as it was already extensively assisting ELM on service delivery such as road repairs and grass-cutting after recently signing an Memorandum of Understanding (MOU) with the municipality.

Other large industries in the Vaal and Emfuleni have not yet publicly adopted a position on the boycott, which seems to be largely supported by small business in Vereeniging, which has borne the brunt of massive service delivery failures.

A meeting between the coalition and ELM on Tuesday this week did not take place following intensive talks last week with a delegation led by Executive Mayor Sipho Radebe.

ELM emerged from partial administration by the Gauteng Provincial Government at the end of September – slated as a “total failure” by the coalition – and political sources said it was unlikely that President Ramaphosa would accede to any request to dissolve the municipality to  the upcoming ANC National Conference.

ELM has not yet indicated whether no-payment of rates and taxes would lead to power and other service cut-offs.

Only one coalition leader, Kobus Janse van Rensburg of Erpa, had by publication time indicated he would publicly name their business as part of the boycott and whether they would prove that they had participated personally.

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Gugulethu Kgongoane

Gugulethu Kgongoane is the Online Editor of Sedibeng Ster. Email: gugu@mooivaal.co.za She is also an online journalist of Vaalweekblad. Email: gugu@mooivaal.co.za

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