Herman Mashaba blasts Pikitup’s proposed tariff increase

JOBURG – Ward 89 Councillor Herman Mashaba explains why it is not viable for Pikitup to increase its current tariffs.

DA mayoral candidate, Herman Mashaba has described the proposed 129 per cent Pikitup tariff rate increase as a financial ambush on unsuspecting residents.

Pikitup recently announced through its website that payment structures and tariffs would be amended to allow refuse collection rates to increase and in some instances up by 129 per cent.

Mashaba commented on the issue via a statement which called the increase outrageous and pointed out that the Pikitup increase would hit the poorest residents hardest, and will cost struggling residents dearly.

Mashaba compared the proposed increase with that of the City of Cape Town that will only be asking for 7.92 per cent more from its residents.

“Currently the City transfers R650 million per year from rates revenue to Pikitup to fund the shortfall in their operating account, but now the entity is expected to generate all of its income on its own,” he explained.

Mashaba noted that Pikitup was not increasing service charges based on land value or bin charges and pointed out that this increase has not led to reduced assessment rates, in effect leading to residents being charged double.

“Furthermore, in its latest annual report, Pikitup declared a R124 million surplus, which begs the question why it would demand such exorbitant increases,” he asked.

Mashaba said that the DA believed that the City of Joburg was trying to financially ambush residents so as to facilitate increases for Cosatu-affiliated unionised Pikitup workers who embarked on an unprotected strike for over five weeks.

He explained that the DA urged residents to come out in their numbers and attend the meetings held by the City in order to register their objections, and to stand firm against the increase.

Spokesperson for Pikitup, Jacky Mashapu vehemently denied that Pikitup or the City of Joburg was trying to ambush residents but that the increase was only a proposal until residents had a chance to agree or object.

“The City of Joburg would not ask residents for a 100 per cent increase in tariffs as we are living in a democratic society. Public participation is mandatory and the proposed tariffs are available on the website,” Mashapu said.

Details: Pikitup, 011 712 5200.

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UPDATE: Pikitup is back on schedule 

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