The City of Tshwane has been on a rather successful debt collecting mission. Disconnecting crucial municipal services, such as electricity and water, from establishments with heavily overdue bills. After having received a fair number of payments, with minimal court struggles, it’s looking like Tshwane’s plan is working. As a result, it may be that Joburg, and maybe even Cape Town, will soon be adopting a similar debt collection approach.
Joburg Collections Start in Sandton
On Wednesday this week, Joburg Mayor Mpho Phalatse and City officials embarked on a debt collection operation. Called the #BuyaMthetho campaign.
The city complains that the Sandton area alone owes more than R38 billion for municipal services. Of which, R168 million is apparently from Sandton City shopping mall. So on 12 February, the City of Johannesburg sent Sandton City a pre-termination notice set to expire on the 26th of the month. Warning that should it not pay its outstanding municipal bills by the end of February, its services would be suspended.
As well as Sandton, the City on Joburg has also made a stop at the SA Local Authorities (SALA) Pension Fund offices in Sandown. According to officials, SALA Pension Fund owes the city R7.4 million for various municipal services.
Will Cape Town also Follow?
Judging by the success of the City of Tshwane’s collection campaign, there is no reason why other major metropolitan cities won’t follow their lead. Although, as of yet, the City of Cape Town has not started any similar campaigns.
