R500k bill unpaid, so lights out at kids’ home
THE electricity supply to St Philomena’s Children’s Home in Sydenham has been disconnected because of accumulated debt of more than R500 000.
The home caters to 29 girls between the ages of 6 and 18 and needs R240 000 a month to operate. It derives income from a Kwazulu-natal Department of Social Development subsidy, sponsors and the hiring out of the hall.
The ethekwini Municipality disconnected the electricity on Tuesday. The home’s utility bill on January 8 totalled R506 271.14. Their January bill totalled R60 000 including VAT.
The home’s director, German Giraldo, said their woes began in November 2017 when they began receiving a higher than normal utility bill. Soon they owed R270 000. The municipality told Giraldo the home might have a water-pipe leak so a plumber was hired to fix the problem.
Once it was repaired, Giraldo entered into a payment plan with the city, including having to pay interest and VAT on the amount. In January, they had paid their bill several days’ late. They are now using a generator.
Giraldo, who has been the director for 12 years, said they were considering selling a house they owned to pay off the debt. The girls were housed there but were recently moved to the St Philomena’s premises.
“Our legal representatives are collecting evidence in the hope that the courts can assist. We’re also making an appeal to the community to assist us with financial contributions. We are an established facility but with dire financial problems,” he said.
Giraldo was also upset that the city did not take action against those illegally connecting electricity to their homes at the Foreman Road informal settlement behind St Philomena’s homes.
“You can see wires hanging over street poles in Cato Manor and Kennedy Road. Nobody takes action. We are prepared to pay but would like some concessions. Everyone is complaining about the billing system. You either pay or get disconnected,” Giraldo said.
Department of Social Development spokesperson Mhlaba Memela said the institution was not managed by the department but was a registered Child and Youth Care Centre. He said such a centre was funded by the department for 30 children.
“It has its own board of management. The department has been supporting this NPO with finances as they submit their claims monthly.
“It must be noted that for 2019/20 financial year, the department budgeted R1.2 million for St Philomena’s which is claimed monthly. The institution is currently paid R4 000 per month per child,” Memela said.
According to the department, St Philomena’s had been paid R815 930 between April and December 2019.
“The claim for end of January is being processed. It’s unfortunate that St Philomena’s finds itself in this situation,” Memela said.
He said the department had dispatched a team of officials to engage management to understand what had led to this crisis and to find a solution.
Municipal spokesperson Msawakhe Mayisela said the city would not discuss a customer’s account with a third party.