Ekurhuleni metro on mission to recoup debt of more than R29bn

Ekurhuleni residents, businesses and government entities owe the city more than R29b in rates and services.

The metro confirmed last month that by the end of last year, the CoE was owed this amount by residents, businesses and government entities in unpaid municipal services.
Of this bill due to the city, R23 726 167 000 was owed for 90 days or more.
Breakdown
• State entities owed the city R220 588 000, of which R90 011 000 has been unpaid for more than 90 days.
• Municipal entities owed R20 434 000 and R4 303 000 is unpaid for 90 days or more.
• Businesses owe R5 081 417 000 and R2 983 048 000 remains unpaid for more than 90 days.
• Households owed R23 797 665 000 and R20 335 838 000 remains unpaid at more than 90 days.
Other uncategorised debtors owe R364 805 000 000 and R312 967 000 remains unpaid at more than 90 days.
Crackdown
The CoE embarked on a debtors crackdown to recover money owed to it with a focus on customers with accounts in arrears.
By January 24, the blitz saw the city recoup more than R3m from three Germiston companies that owed millions in unpaid services.

As part of the blitz, technicians conducted electricity cut-offs in different parts of the city and targeted companies that owed the municipality millions in outstanding monies.

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“Nine businesses, owing the city more than R21m, were targeted by a multi-departmental task team on a mission to cut off the supply of electricity and water to recover the money.

“Electricity and water supply to some of the businesses were cut off after they ignored numerous requests to pay the outstanding debt. However, businesses that could pay half of their debt and make arrangements with the city for the balance were reconnected,” explained metro spokesperson Zweli Dlamini.

Dlamini said that two disconnected businesses were fined R24 377.04 for illegally connecting their electricity.
“The disconnected businesses will be closely monitored until they settle their debt in full. The blitz will continue across Ekurhuleni.”

Pay up or face the consequences
The City calls on all municipal account defaulters to pay up or face hash actions, which include the cutting of their services.
Debt management interventions are intensifying against all defaulters to ensure the city’s financial sustainability and the continued delivery of quality public services.

Dlamini explained that the city has embarked on an SMS and email campaign titled #PayYourPart. “It aims to remind customers to pay by the due date if they have not yet done so and encourages those in arrears to pay up if they can or to approach the city to discuss payment options.”

Payment arrangements
The city outlined what is expected when you make payment arrangements.

The customer shall be required to make a down payment based on consolidated arrear debt on the date of agreeing to pay in instalments on the following basis:

• First debt repayment arrangement: 0%
• Second debt repayment arrangement: 15%
• Third debt repayment arrangement: 30%
• Additional debt repayment arrangement: 30%

Residential consumers can apply for debt rehabilitation incentives. The conditions are:
• Residential category of properties as per the updated general valuation roll (GV21) with a value of less than R 1 500 001.
• Consolidated account debt outstanding for periods over 12 months.

Water restriction, power cut
Account holders who have yet to pay or make arrangements to settle their debts will have their water restricted and electricity supplies disconnected until proof of payment on their accounts is provided to the city.

“The city will continue to intervene to establish a payment culture in our communities.”
Residents are encouraged to visit their nearest customer care centre for advice and guidance if they have queries regarding their arrears.

Where to pay
Customers wishing to pay their accounts can do so at the city’s customer care centres. Customers can also make payments at applicable retail stores using the new third-party payment options, Pay at and Cigicell, using the prefix 11544 and the municipal account number.

Customers can pay their municipal bills at the below retail stores:
• Ackermans, Boxer, Builders Warehouse, Cambridge Food Checkers, Game, Makro, PEP, Pick n Pay, Rhino Cash n Carry, Shoprite and Spar.
The city vowed that its teams are prepared for any form of public backlash against the disconnections of defaulters.

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