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South Africa: No Sacred Cows As Tshwane Cuts Power, Water to Recover U.S.$1,1 Billion

Harare — In a battle to ensure that they are paid what they are owed for providing services, the City of Tshwane – which includes Pretoria where President Cyril Ramaphosa’s offices are – has embarked on an aggressive revenue collecting campaign by disconnecting water and electricity to government departments, diplomatic missions and commercial properties. The city is owed R17 billion (approximately (U.S.$1,125,730,140) in arrears.

“We mean business. Make arrangements to pay your account before you find yourself in the dark,” the City warned on social media on February 9, shortly before it disconnected electricity supply at the 5-star Sheraton Hotel. They say the Sheraton Hotel owes the city R23 million.

So far, it seems that no one is immune during this unprecedented local government campaign, with the city cutting off electricity at the South African National Defence Force offices.

“When we say No Fear, No Favour, we mean it. We are at the SANDF Navy headquarters to cut electricity, they owe us R3,197,428,81 in property rates,” they announced.

Among those owing large amounts to the city is the Department of Infrastructure Development, which owes R260m in rates and services.

Electricity was disconnected at the offices of the South African Women’s Federation which owes about R5 million in arrears.

Meanwhile, the state-owned arms manufacturer Denel has just settled their R2.2 million debt.

Some businesses have approached the courts to interdict the municipality from cutting services.

However, Member of the Mayoral Committee for Finance Alderman Peter Sutton has dismissed as false, rumours that all the cases are being taken to court and the city is losing.

“Less then 1% of court challenges against the City for disconnecting debtors have been successful. The City anticipated that there would be pushback and we ensured that we have dedicated legal teams on standby,” Sutton said.

The City of Tshwane aims to recover up to R5 billion from its debtors by the end of February 2022 by going door-to-door to collect on unpaid bills. It also emphasised that the debt-collection campaign is not going to be a once-off hence they are prepared to defend the disconnections that will be implemented at every turn.

Pretoria businesses, residents, government entities and government departments, owe the City over R17bn.

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