The City of Joburg assists struggling households


By MMC Finance- Councillor Julie Saddaby

 
Financially pressed households in the City of Johannesburg have been offered relief, thanks to the recent passing of the amended Credit Control and Debt Collection Policy by the City of Joburg Council. Whenever a new service account is opened with the City, the account holder must pay a deposit. All residents, sectional title holders and business properties must pay a deposit equal to two months' deemed water and electricity consumption. 
 
The adopted policy ensures that pensioners who receive rebates, account holders registered as indigent, and property owners whose properties have a market value under R500 000 are now exempted from paying a security deposit for services. The deposits will not be refunded but discharges to the monthly billing. The Council approved the amendments to the policy during the ordinary council meeting, which was held on 31 August 2022. 
 
The Multi-Party Government resolution demonstrates one of the Mayoral priorities: Johannesburg is a caring City. The policy also seeks to increase the efforts against electricity and water theft by making it a criminal offence to connect to the City's services illegally. "The illegal connection and/or tampering with water or electricity supply is a criminal offence, which may result in legal action being taken against the offending customers," reads the policy. Other significant amendments to the policy are: 
 
• All account holders who are Extended Social Package grant beneficiaries are exempted from paying a security deposit. 
 
• All customers who receive pensioner's rebates are exempted from paying a security deposit. 
 
• All customers with a property value not exceeding R500 000 are exempted from paying a security deposit. 
 
 • A person registered as an indigent under the City's Expanded Social Package will be entitled to the relief and benefits afforded under the City's Expanded Social Package terms and conditions. 
 
• Services to hijacked/abandoned properties shall be restricted or disconnected upon nonpayment of an account for services to the property or at the request of the owner of the building. 
 
• Payment Arrangement: The balance will be payable over a mutually/or agreed period as prescribed by the City. 
 
• A domestic customer who cannot afford to pay a deposit may still be assisted with a payment arrangement if they can provide the necessary proof of their financial distress. 
• The City reserves the right to request a minimum 50% down payment in respect of payment arrangement concluded with non-domestic customers and a balance payable over less than three months. 

 o In instances where the customer cannot pay the debt within the prescribed period, the City will request the non-domestic customer's debtor to furnish the City with the latest year's audited financials. The City will also require six months of bank statements for the City to consider concluding the payment plan up to six months. 
 
• Upon application for clearance figures and the consequent certificate issuing, the City may require the purchaser to apply for all the services linked to the premise/property. In other words, by registration of the property, the registered owner accepts liability for all services rendered by the City to the said property/premise unless otherwise provided for in any other policy or legislation of a court order 
 
 • Councillors, staff members of the City and Municipal owned Entities may not be in arrears to the City for rates and services charges for a period longer than three months as regulated by the Local Government Municipal Systems Act 32 of 2000, the Local Government Municipal Finance Management Act 56 of 2003 and the Local Government Municipal Systems Amended Act 42 of 2003 
 
. o In the event of termination of employment, clearance figures must be requested. On the confirmation, all arrear amounts will be captured on the payroll system for deduction from the employee's final salary. Section 10 (1) of the Payroll Policy provides that the arrears on municipal rates and services accounts of employees are seen as a statutory employee deduction. 
 
• Despite the City of Johannesburg Municipality's legal obligations in terms of the Systems Act, the City may reserve its rights and may consider suspending any/or all credit control measures during a declared National/Provincial disaster of any kind whatsoever. 
 
 o The City, at its discretion, during a declared disaster, may consider measures under its credit control policy to assist customers during the said period, notwithstanding the customer's duties to service their/its respective municipal services. 
 
o Such considerations may be considered during the declared period. The City declares that any suspension during the declared disaster is only temporary, and customers are obliged to fulfil their obligations to their respective municipal accounts. 
 
o Should the said declared disaster cease to exist/suspend, the City further reserves its rights to resume its credit control measures in line with its obligations under the Systems Act. 
 

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