The DA-led coalition in the City of Johannesburg is demanding millions of rands owed to it by the government and the Gauteng provincial government for municipal services, and may soon terminate services to some of their buildings.
The department of health has some of the highest bills, with Charlotte Maxeke hospital owing more than R200m and Chris Hani Baragwanath more than R66m. Helen Joseph hospital has two bills of R26m and R18m.
The campaign in Johannesburg is a result of outstanding bills dating back six months at government buildings owned by the department of public works, which house critical services such as the health, police and education departments.
The move comes after the City of Tshwane, which is also led by the DA, went on overdrive this week, switching off services to numerous buildings including those that house the department of water and sanitation, state defence company Denel, the department of infrastructure development, the Independent Investigative Police Directorate and the State Theatre.
It also switched off services to the Sheraton Hotel and Lyttelton Shopping Centre, among other commercial properties.
The Sunday Times has seen a spreadsheet setting out the debt. Tshwane collected R150m in its blitz this week.
The total debt owed by national government in Johannesburg exceeds R59m, while the provincial government owes more than R500m.
In a written reply on Friday, Johannesburg mayor Mpho Phalatse confirmed her municipality has written to the department of public works to raise the issue of money owed.
This comes after she raised the issue with Gauteng premier David Makhura on the mounting debt owed by the province.
“The department of public works and infrastructure is the national government’s landlord and therefore the municipal account holder, meaning that individual national departments have not been engaged but rather the public works department,” Phalatse said.
“The occupants of these buildings — national government departments, agencies and entities — have received physical pre-termination notices that form part of our revenue department’s credit control measures, with the public works department receiving the same notices via email.”
She confirmed that the bulk of the debt owed to the city by both national and provincial governments was for critical government agencies.
“The sad irony of this situation is that should we cut their water and electricity it would have an adverse effect on service delivery. Yet their non-payment to the city for services rendered has an equally negative effect on service delivery to the city’s residents.
“We are engaging them as delinquent ratepayers by following the city’s by-laws. That said, we have been too patient with those who ignore our demands, whether they are government, business or residents. The time for a soft approach with those who refuse to pay is over.”
Phalatse said the city was aware many of its residents have fallen on tough times and it will reopen debt relief programmes aimed at residents who are struggling to pay their rates, taxes, and levies.
Should we cut their water and electricity it would have an adverse effect on service delivery, yet their non-payment has an equally negative effect on service delivery to the city’s residents
— Johannesburg mayor Mpho Phalatse
“To increase residents’ access to their municipal invoices we have developed a smartphone application that allows residents to receive their invoices and pay on time.
Indigent residents will access free basic services by registering on the city’s expanded social package database,” she said.
Makhura’s spokesperson Vuyo Mhaga confirmed the provincial government was co-operating with the city to resolve the debt issue.
He said a team with members from both the provincial government and the municipality had been formed for that purpose.
“Both the province and Johannesburg have agreed the mechanics of clearing that debt,” said Mhaga. No timeframes had been set to clear the debt but he said there was no risk yet that services to their buildings would be cut off.
Former Johannesburg mayor and current caucus leader Mpho Moerane said when his party left office, debt collection was at 80%.
“At that time in Johannesburg we did credit control, including government buildings, including provincial government, in particular health and education,” said Moerane.
The public works department had not replied to written questions by the time of going to print.
Speaking to the Sunday Times on Friday about their campaign, which has caught headlines, City of Tshwane’s acting city manager Mmaseabata Mutlaneng defended the disconnection programme.
She said officials visited about 400 buildings and disconnected half of those which owed about R500m. Mutlaneng said some buildings had made arrangements with the city.
“It’s definitely not a political stunt. It is an administrative programme, where we are preparing for the adjustment budget for the current financial year and looking at our performance in terms of our financial stability.”
If the city was not able to collect revenue it would not be able to meet its commitments.
She said the city understood that there was a national lockdown for two years and it had not been overly harsh on its customers.
“We are focusing on government because it receives equitable share on a month-to-month basis from national and provincial governments. They should not be having difficulties paying. The city is owed R17bn by ratepayers.”
Gauteng local government and traditional affairs MEC Lebogang Maile this week voiced his support for the action taken by Tshwane.
“The [City of Tshwane] is on course. You can’t have government and the private sector defaulting on their municipal bills yet carry on as if it is business as usual. The citizens as well must commit to paying however little they have and those who can afford must pay in full,” said Maile.
He said the political leadership of Tshwane and its management was dealing with the debt crisis in the best interests of its citizens.
“This should not be misconstrued for political scoring. It is not. They are fulfilling their mandate.”
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