Hundreds of Ekurhuleni businesses and residences told to pay up or be cut off

Pay up or get cut off. The City of Ekurhuleni will not hesitate to cut off services, no matter who or what entity is involved.

Over the past few months, the municipality has placed hundreds of businesses and residences on notice. But some large debtors seem to have got away with nonpayment for extended periods of time.

State-owned entities like Transnet, whose power was cut off last month, owed R14 million.

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Ten days ago, Denel was left in the dark after failing to keep to a payment arrangement for its R7.8 million in outstanding rates and utility bills.

The two state-owned companies were not alone in disregarding payment.

Ekurhuleni needs the money

Former DA Ekurhuleni councillor and now member of the Gauteng Provincial Legislature Mike Waters said by the end of August, four government departments owed Ekurhuleni more than R137 million.

“This is money that a cashstrapped municipality can use to ensure service delivery.

“It is despicable that government institutions do not settle their bills and we are deeply concerned at the lack of accountability and accounting skills prevalent in the Gauteng departments,” he said.

Ekurhuleni spokesperson Zweli Dlamini said there were government-subsidised schools that owed more than R10 million to the city.

The department of infrastructure and development, whose outstanding account totalled R103 million by the end of August, with some amounts dating beyond the 120 days, paid R98 million recently towards its arrears.

The department of agriculture, rural development and land reform’s account is R1.5 million in the red, with a further R6m in dispute.

Figures provided by Ekurhuleni showed that the Gauteng department of health was more than R19 million in debt to the municipality.

Human settlements reduced its bill from R75 million outstanding to a current balance of R3.7 million as of 24 October. However, it denied that it owed the city anything.

The department of education’s bill is R24 million.

The state-owned SAA was one of the few public enterprises in good standing.

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Ekurhuleni should have acted sooner, MPL says

Waters asked why departments’ payments were allowed to fall so far behind in the first place.

“Given the dire financial position that Ekurhuleni is in, it boggles the mind that the city has allowed these departments to amass millions in debt.

“It is obvious credit control measures are only applied to residents while government departments are given a ‘get-out-of-jail’ pass.

“This irresponsible management of the city’s finances places services at risk and increases the inability of the city to pay its own creditors,” Waters said.

Dlamini disagreed. “We do not care whether you are a stateowned company, a government department or a privateer. If you do not settle your bills, you will be cut off.”

The city has teams of metro police and service officials that head out every weekend to disconnect nonpayers. And there are many.

Since the launch of its Siyakhokha Siyathuthuka (We Pay, We Progress) campaign in August, more than R3.4 billion has been collected in outstanding electricity, water, rates and services bills.

Finance MMC Jongisizwe Dlabathi has been on roadshows across Ekurhuleni, met corporates, government departments and other stakeholders applying a carrot-and-stick approach to recover billions in debt.

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