Msunduzi collects R50m

THE Msunduzi Municipality has increased its cash reserves after collecting more than R50 million in one week from defaulting businesses and organisations.

The collection comes after the municipality embarked on an aggressive drive of disconnecting services of businesses and organisations that were in arrears.

The municipality had to resort to hardball tactics that included cutting services and naming and shaming businesses and organisations that were owing in order to extract the payments. Some debts, the municipality said, had accumulated over years and many of those targeted had ignored demands for payment.

It disconnected more businesses yesterday and among them was a government parastatal Transnet.

However, the tactics have drawn criticism, with some entities claiming to have been unfairly disconnected as their accounts were in order. There have also been concerns about the naming and shaming.

Municipal spokesperson Ntobeko Mkhize defended the disconnections, saying everything had been done by the book.

Mkhize said by yesterday afternoon, the municipality had collected more than R50m in cash and this figure was expected to rise.

“The municipality has collected about R49 (later R50) million so far and more payments are being processed,” said Mkhize.

“There has been a positive reaction in relation to making payments. The municipality has a responsibility to provide services. The municipality is empowered by legislation to collect what is due.”

The municipality revealed yesterday that Transnet properties had a consolidated debt of more than R14m and they had therefore disconnected services to their buildings.

Transnet had not responded to a request for comment at the time of publication.

Since last Friday, the municipality has been on a drive to collect what is due to it and has disconnected businesses, government departments and schools in an effort to recoup more than R5 billion.

The Department of Public Works is among the entities that have felt maligned by the disconnections.

On Tuesday morning, the Msunduzi teams disconnected the National Prosecuting Authority (NPA) offices on account that it was owing the municipality R1m.

Public Works and Infrastructure spokesperson Thami Mchunu said there were no outstanding bills for water, lights and rates at the building, adding that the municipality made a mistake by disconnecting the building.

But Msunduzi insisted that no mistake was made.

The Department of Co-operative Governance and Traditional Affairs (Cogta) said it was important for consumers to pay for services.

Cogta spokesperson Nonala Ndlovu said municipalities in the province continued to suffer the “debilitating effects of the culture of non-payment for municipal services that permeates through our communities”.

“The department also respects the right of the municipalities to withhold their services in cases where consumers are in arrears so long as the rights of the consumers are respected.”

The business community also welcomed the initiative, but expressed concerns about naming and shaming.

Melanie Veness, chief executive of the Pietermaritzburg and Midlands Chamber of Business, urged the city to reconnect those disconnected in error, urgently.

“The naming and shaming campaign is something that we have warned the city against employing, because when they get things wrong, they can do irreparable damage to an organisation’s reputation.

“It’s very easy to mess things up too, because often the tenant occupying the premises gets named and has actually paid their landlord and it’s the landlord who owes the city,” she said.