The City of Johannesburg has disconnected the water supply at the Leeuwkop Prison over R9.8 million debt. The correctional facility has reportedly failed to adhere to a payment arrangement put in place by the City. The City says its current debtor's book is sitting at close to R47 billion, for rates, taxes, sewer, electricity, and water, which they say is unsustainable.
The multifaceted credit control drive was led by the city manager Floyd Brink, Revenue Department, City Power, Joburg Water, and Johannesburg Metro Police Department (JMPD) across the city on Friday. During the drive, a Roodepoort businessman was arrested after he illegally connected electricity and water to his glass-making business which owes the City R6,4 million. This was part of a sting operation on businesses that are illegally connected to the City's services. The businessman was identified and arrested by the JMPD officers at his business premise in Stormhill on Friday afternoon. The City's group chief financial officer, Tebogo Moraka said the credit control operation on Friday was just the start of one of many more operations to come. "We are aggressively pursuing those customers who owe us and are not coming forward to settle their growing debt, nor come forward to sign the a of debt (AOD) and plead their case. We have no choice but to switch off our services to those not coming forward to pay their arrear debt," said Moraka. Moraka said the disconnection of services will also focus on large defaulters and government departments in a bid to recover the outstanding debt.
Moraka said the City targeted ten of their worst defaulters, which included a hotel, large residential estates, and a panel beating business who collectively owe the City more than R104 million for unpaid services. This week alone, the City's credit control drive managed to remove all its water meters from a hotel that owes the City in excess of R28 million.
• Eight (8) meters were found illegally reconnected and affected level 3 disconnection on both services (power and electricity). The level 3 disconnection means the City removes its infrastructure which includes the meter from the premises.
• One account of the old age home owing R26.6 million entered into payment arrangements; and paid a 30% deposit of R7.7 million and the remainder of debt payable over 3 months.
• Properties with successfully effected level 3 disconnections will be handed over to the City's lawyers for litigation process if no payment receipt is within 72 hours from the cut-off date. "All property owners who are struggling to service their accounts for various reasons, are advised to approach the City for further assistance, by means of payment arrangements (Acknowledgement of Debt sign-off) to avoid disconnection of services," Moraka added.