Cape Town - Finance Minister Enoch Godongwana has weighed in on the coalition-led municipalities that are disconnecting services to non-paying government departments, saying other municipalities across the country should follow suit.
Godongwana said there was nothing untoward about the City of Joburg and the City of Tshwane doing the right thing of interrupting services in order to collect money owed to them for rates and services.
“I would encourage other municipalities to do the same to collect the money,” Godongwana said.
The City of Tshwane was the first to disconnect electricity and water to government departments, commercial properties and households who have defaulted on their municipal accounts.
On Friday, mayor Randall Williams said the city had collected more than R500 million since the revenue-collection campaign started by disconnecting 1 061 accounts last month.
“The city does not give institutions, such as embassies and government departments, leeway with regard to the payment of utility bills,” Williams said.
“The campaign is ongoing and the campaign has also started to disconnect defaulting residential areas. Consumers are urged not to ignore their bills, but rather to come forward and make arrangements to keep their accounts in good standing,” he added.
The City of Joburg started its revenue collection campaign targeted at government, business and residents with outstanding municipal accounts.
“The city is owed a total of R38 billion and will continue pursuing this debt from all those owing,” said the city on Thursday.
It also said when residents don’t pay their municipal rates on time, it hinders programmes of building a well-run, safe and business-friendly city.
“The city has adopted an approach that says if you can pay, you must pay, and if you refuse to pay, we will cut you off,” warned the city as it started with disconnections in the Johannesburg correctional services on Thursday.
Deputy Minister David Masondo said if people don't pay up, services should be interrupted.
Masondo recalled an incident when he was approached by the eThekwini Metro with a list of non-paying departments, and he gave the thumbs up for the disconnection of services.
“We have no issue with what Tshwane is doing,” he said, adding that it was in fact not Tshwane that started disconnections as Polokwane Municipality had already embarked on a similar exercise.
“You can’t provide services to departments or institutions that are not paying … That is the only way to provide sustainable services,” Masondo said.
Meanwhile, Public Works and Infrastructure Minister Patricia de Lille noted that there has been a lot said and reported on government debt owed to municipalities, specifically the City of Tshwane with their campaign to switch off services to government buildings.
De Lille said the department chief finance officer and his team have been engaging with all municipalities for some time to resolve all payment matters.
“According to the latest age analysis that was received by City of Tshwane (CoT), a total amount of R82m was reported to be outstanding, with R77m current and within 30 days and R53m more than 60 days.
“The DPWI has processed payments to the value R464m to CoT since April 2021 to date in line with the invoices received for this period,” she said.
De Lille said her department remained committed to paying all verified invoices on time.
“The disconnections of services experienced by our client departments were as a result of private landlords that are not paying the municipality for the services, rates and taxes due.
“The issue of private landlords not paying for municipal services in buildings leased for government departments affected two landlords mainly,” she said in response to reported disconnections at buildings leased by some departments.
De Lille said her department has paid R1.5bn and R2.3bn in property rates and municipal services, respectively, directly to municipalities in the current financial year.
“Some of the known disputes are still being addressed with municipalities through constant engagements,” she said.
Political Bureau