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Power cuts, water shut-offs: Tshwane intensifies war on R30 billion in unpaid municipal debt

The City of Tshwane has intensified efforts to collect over R30 billion in unpaid municipal debts by disconnecting electricity and water supplies to businesses, government entities, and residential areas. As of June 15, residents owe R20.778 billion, businesses owe R7.184 billion, and government departments and state-owned entities owe R2.272 billion. The city has disconnected services at several high-profile locations, including Telkom SA Ltd's premises and the South African Post Office's Koedoespoort offices. The municipality claims it has already recovered more than R13 billion through debt

Wendy Dondolo | Published 19 minutes ago

The City of Tshwane has intensified its credit control campaign, disconnecting electricity and water supplies to businesses, government entities and residential complexes as it battles to recover more than R30 billion owed to the municipality.

According to the city, residents owe R20.778 billion, businesses owe R7.184 billion, while government departments and state-owned entities collectively owe R2.272 billion as of June 15.

Among the latest high-profile targets are Telkom SA Ltd's premises in Highveld, Centurion, where electricity and water were disconnected over a debt exceeding R1.1 million.

The city also cut services to Tshwane Regional Mall in Mamelodi, where Interden Management Services (Pty) Ltd allegedly owes R638,000, and to the South African Post Office's Koedoespoort offices over an outstanding debt of R550,000.

The municipality said its debt collection initiatives have already recovered more than R13 billion.

"Credit control measures are being intensified until the city recovers what is owed to it. Service delivery is continuous, and as such, the city will leave no stone unturned," the city told IOL.

The municipality warned that widespread non-payment continues to undermine its ability to deliver services and meet financial obligations to bulk suppliers such as Eskom and Rand Water.

"Non-payment impacts service delivery. The city needs to meet certain funding targets; as such, non-payment means the city struggles to meet its commitments for smooth service delivery," it said.

The city revealed that it has carried out more than 150,000 electricity disconnections and over 61,000 water restrictions and disconnections during the current financial year, with residential customers accounting for the highest number of enforcement actions, followed by businesses.

Meanwhile, the municipality has also widened its enforcement efforts to include illegal structures and unlawful utility connections.

During a recent "Bad Buildings Operation" at 139 Bloed Street in Pretoria CBD, officials discovered 43 rooms being rented out for between R1,200 and R1,800 a month despite the structures having previously been demolished in 2021.

Ward 45 councillor Flora Monama said authorities found illegal water and electricity connections at the property.

"Although these illegal structures were demolished in 2021 they have unfortunately been rebuilt. This is a privately owned property, and a contravention notice has been issued," Monama said.

"Upon investigation we discovered an illegal connection of water and electricity. We are disconnected with immediate effect."

In a separate operation on Christoffel Street, officials uncovered recently what Monama described as a hidden informal settlement comprising 30 shacks and several rented rooms.

"We have served a notice for illegal structures and disconnected both the water and electricity connections," she said.

"These operations are not in vain. We are working within the law, and every single day we show up brings us one step closer to disrupting lawlessness and restoring order."

The City of Tshwane executive Mayor Nasiphi Moya has also publicised a series of recent enforcement actions against residential complexes and commercial properties with substantial municipal arrears.

On June 11, the city disconnected electricity and water supplies to Lawhill Apartments in Sunnyside, where Eathnigue Investments (Pty) Ltd allegedly owes more than R1.1 million.

Services were also cut at Haakdoring Residential Complex in West Park over a debt exceeding R1.7 million, while City Prop, First Venture on Bloed Street was disconnected for arrears of more than R641,000.

Moya further reported that Constantia Metering Residential Complex in Sunnyside owes the city more than R1 million and was similarly disconnected.

The municipality said challenges to debt recovery include customers failing to settle accounts after disconnection, the growing use of off-grid solar systems, infrastructure tampering and intimidation of municipal officials in some areas.

Despite these obstacles, Tshwane says its "Tshwane Ya Tima" programme and other credit control measures will continue as the city seeks to improve revenue collection and protect its financial sustainability.

IOL News

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IOL (Independent Online)IndependentCenter2 days ago
Power cuts, water shut-offs: Tshwane intensifies war on R30 billion in unpaid municipal debt

The City of Tshwane has intensified efforts to collect over R30 billion in unpaid municipal debts by disconnecting electricity and water supplies to businesses, government entities, and residential areas. As of June 15, residents owe R20.778 billion, businesses owe R7.184 billion, and government departments and state-owned entities owe R2.272 billion. The city has disconnected services at several high-profile locations, including Telkom SA Ltd's premises and the South African Post Office's Koedoespoort offices. The municipality claims it has already recovered more than R13 billion through debt

Bias read (Center): The article reports on a factual situation regarding municipal debt collection without apparent ideological framing. It presents the actions taken by the City of Tshwane and provides specific figures and examples without overtly favoring any political side.

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