Penning debates municipal deposit
Several Acts relating to municipal government require that councils communicate effectively with its citizens, but it is clear that council ignored this.
This was stated by Clr Victor Penning, the DA spokesperson for finance and a Kensington resident, in reference to the municipal deposits some residents now have to pay.
“The city’s revenue department claims to have sent out 7 000 letters in February to consumers, advising them that council required an additional or first time deposit from them in accordance with the council’s credit control bylaw. This bylaw requires a deposit equivalent to the two month’s average consumption of the metered services. This letter apparently requested customers to pay the deposit or to make arrangements to pay it off over six months. In the August council meeting, the mayoral committee member (MMC) for finance, Clr Geoffrey Makhubo, in response to a question by me, conceded that the council ‘had not communicated effectively’ and ‘could have done better’. I communicated with the MMC over the past month, suggesting that council should have first advised each consumer of its intention to levy a deposit or increased deposit, stating the amount, and advised that the deposit would be levied in instalments over six months,” said Clr Penning.
He added that instead, council had levied the full deposit and set off any payments made on the account against the deposit, resulting in consumers’ municipal service accounts going into arrears with the threat of service cuts.
“In response, MMC Makhubo announced that the deposits would now be debited in equal instalments over six months in order to relieve the financial stress on consumers. Consumers are already battling to make ends meet and the sudden, unannounced large deposits debited on municipal accounts was, in some instances, the final straw,” said Clr Penning.
Mr Kgamanyane Maphologela, from the City of Johannesburg (CoJ), said the city took the decision to raise the deposit on customers’ accounts in line with its bylaws. It was calculated as a rate of deemed average consumption, for a period of months or area average, or supply size per convectional metered service in respect of the properties in question.
“We offer a reasonable grace period to these customers to pay, or settle outstanding deposits reflecting on their accounts, in six monthly instalments, effectively from September 1 this year. These outstanding deposits will be billed on customer accounts but will become fully due in February 2015. The city is aware of the financial impact this will have on customers and is offering them a payment plan, to be settled over six months, for customers who have difficulty in paying the full lump sum. However, customers must continue to pay their normal monthly municipal accounts/services,” he said.
Mr Maphologela said the city has also taken a decision to suspend any disconnection related to non-payment of the deposit raised until the end of February 2015.
“The city has communicated directly to all customers whose accounts reflect an outstanding deposit, and advise customers not to ignore the official notice. Failure to exercise the instalment plan option will result in the city being obliged to enforce bylaws and subjecting these customers to normal credit control process. Customers can elect pay these outstanding deposits over the period of instalment plan or pay in full based on affordability levels at any of our customer service centres across the CoJ,” he said.
Phone the call centre on 0860 Joburg or visit your nearest customer service centre for further information.
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