Crackdown on Sandton businesses

OVER the past two days, the country’s richest square mile, Sandton, has been in the spotlight, with the municipality cutting off water and electricity supplies to nonpaying businesses in the area.

The municipality has been struggling to collect rates sufficiently to keep its finances stable.

The move to force residents to comply with the law has been described as “Buya Mthetho” (bring back the law). The initiative to ensure that customers pay for rates and other services has been widely welcomed by all political parties.

Hundreds of businesses face the possibility of having their electricity or water supply cut due to the millions they owe to the City of Johannesburg.

The city’s Group Finance Department has rolled out its aggressive disconnection drive, affecting business customers citywide. Pre-termination notices have been sent to customers in arrears across the city, warning them about impending disconnections.

Kgamanyane Maphologela, director of customer communications for the city’s Group Finance Department, said the city will implement its credit control and debt collection policy to recover the debt owed. “The Credit Control and Debt Collection Policy empowers our credit control unit to recuperate outstanding debt from customers owing.”

Maphologela said the Credit Control Policy stipulates that if a customer has not fully paid the outstanding amount and/or an Acknowledgement of Debt Agreement

(AOD) is not entered into with the city within the stipulated period, electricity may be disconnected and water restricted or throttled without further notice.

The city appeals to business customers struggling to service their accounts to approach the city to avoid being cut off by signing an AOD, he said.

“We understand the ongoing economic impact on business. We call on customers not to wait until it’s too late before they approach us. Qualifying customers may conclude an AOD with the city for payment of outstanding debt in instalments.”

Maphologela also warned customers who had illegally connected themselves to electricity and water supplies.