City of Tshwane cuts power and water due to R17 billion debt

The city of Tshwane has launched a “aggressive and unprecedented” revenue collection effort by cutting off water and electricity to government offices, embassies, and commercial properties.

Government departments, embassies, and homeowners that have defaulted on their municipal payments owing the city R17 billion.

Mmaseabata Mutlaneng, the acting city manager, stated that most of the enterprises were not paying on time, and that some had not paid in a long time.

  • Water was disconnected at Lyttelton Shopping Centre, where a business was found to owe more than R750 000.
  • Electricity was disconnected at the offices of the South African Women’s Federation. Mutlaneng said they owe the City about R5m in arrears.
  • Water supply to the Blue Beacon commercial property in Zwartkop, which has SAPS TV as one of its tenants, was disconnected. They owe and R2.3 million.
  • Water supply to the Lake View Business Center managed by TACORA Investments was also disconnected. They owe 2.7 million.

There is a list of 47 buildings and commercial properties where water and electricity will be disconnected unless owners make payments in the coming days. Among them is the Department of Infrastructure Development, which owes R260m in rates and services.

Eskom recently revealed that the City of Tshwane Municipality owed R635 million in arrears. The power utility said the City’s payment patterns have been irregular over the past six months.

“The overdue debt has contributed negatively to the liquidity, financial performance and sustainability of the organisation, where Eskom has to borrow to meet its financial commitments.”

Eskom

In turn the City of Tshwane mayor, Randall Williams slammed Eskom’s decision to reveal Tshwane’s electricity account. Williams said it was concerning that the power utility would write an entire press statement singling out Tshwane’s current account.

↯↯↯Read More On The Topic On TDPel Media ↯↯↯