Durban - eThekwini councillors and staff, collectively owing the city R11 million over three months, are to have their water and electricity connections cut.
This was contained in a report presented to the city’s finance and procurement committee last month.
Government departments, parastatals, businesses and residents were some of the culprits that had failed to settle utility bills and other debts contributing to an outstanding amount of R2 billion.
A breakdown of the report indicated 18 councillors owed R60 000 (R3 300 each, on average) in rates in May. Other culprits included public servants and ward committee members. More than 1 800 city staff owed the city R9.6m (R5 300 each, on average) and 165 ward committee members owed R1.3m (R7 900 each, on average) at the end of May.
The report noted the city had initiated debt collection.
“Monthly staff deductions are made towards staff salaries … A total of 23 844 customers were disconnected for electricity and water.”
Councillors and staff had been included in the amount, with R326 000 being deducted from their salaries. The report indicated that 85 “final demands” had been issued to defaulters, and 40 matters had been taken to court for judgments.
Residents accounted for the bulk of the debt, about R1.1bn.
Government departments were R201m in debt, with housing, basic education, health and social welfare being the biggest defaulters.
Of the amount, R139m had been outstanding for more than three months.
“Properties owned by Ingonyama Trust make up 69% of the R139m. Cogta (the Department of Co-operative Governance and Traditional Affairs) was engaged in trying to facilitate a meeting with Ingonyama Trust to resolve the arrears; no positive response has yet been received from Cogta in this regard. Legal advised revenue to engage through the Intergovernmental Dispute Resolution Process,” the report reads.
Parastatals such as the Passenger Rail Agency of SA, Transnet, the National Ports Authority and Ithala Bank owed eThekwini a staggering R300m. Only R39m of this had been settled by May 31.
On money owed by parastatals, it was reported that “the municipality has invoked section 44 of the Municipal Finance Management Act and has sent letters to National Treasury to intervene”.
Troubled bus operator Tansnat Durban and Emtateni Logistics, the company that ran the city’s parking meter system, owed eThekwini R52.8m.
“Emtateni Logistics is going through liquidation. A report has been approved by council for the legal department to lodge a claim against the liquidators,” the report said.
The city also noted there were areas where the debt was collectable, but the municipality could not enforce credit control activities like disconnection of services. KwaMashu L Section, responsible for R42m in debt, was one such area.
Council Speaker Logie Naidoo said: “We made it clear at our workshops that ward committee members cannot be in arrears. When we get a schedule of councillors in arrears, we immediately issue a letter or SMS to urgently tackle outstanding debt.”
He said councillors needed to set an example.
DA caucus leader Zwakele Mncwango said his party’s stance was that anyone not paying the city should have their services disconnected.
“Cape Town has done it. These departments have properties around Durban … The money that they owe might not be for rates – it might be something else. What do you do to make someone account? You cut their services.
“The problem with Durban is that we always want to find a political solution where there is none.”
He said the city’s inaction against government departments was in contrast to cutting residential services “even if a person owes R20”.
The Mercury