THE City’s Revenue department claims to have sent out 7 000 letters in February to consumers, advising them that the council required an additional or first time deposit from them in accordance with the council’s credit control by-law.
This by-law requires a deposit equivalent to the two months’ average consumption of the metered services.
This letter apparently requested customers to pay the deposit or to go in to make arrangements to pay it of over six months.
In last week’s monthly council meeting the mayoral committee member (MMC) for Finance, Cllr Makhubo, in response to a question by DA spokesperson for finance, Cllr Victor Penning, conceded that the council “had not communicated effectively” and “could have done better “.
Victor Penning had communicated with the MMC over the past month, suggesting that the council should first have advised each consumer of its intention to levy a deposit or increased deposit, stating the amount, and also advised that the deposit would be levied in instalments over six months .
Instead the council had simply levied the full deposit and set off any payments made on the account against the deposit, resulting that consumers’ municipal service accounts went 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.
Councillor Penning said that consumers were already battling to make ends meet and the sudden unannounced large deposits debited on municipal accounts was, in some instances, the final straw .
The effect of these deposits on individuals and small businesses has been dire and threatened their very survival.
“Several acts relating to municipal government require that the councils communicate effectively with their citizens, but it is clear that the ANC-controlled government of Joburg simply ignored this and, as a result, caused unnecessary trauma for its consumers,” said Penning.
