COJ ( CITY OF JOBURG ) aggressive Cut-Off Operation to collect R1 Billion from Defaulters

 

COJ ( CITY OF JOBURG  ) aggressive Cut-Of Operation to collect R1 Billion from Defaulters

The City is set to aggressively collect R1billion from high defaulters in September 2024 as part of revenue collection.

 Kgamanyane Maphologela, Director for Communications and Stakeholder Management, says the City is going after various categories of customers with huge municipal debt. 

Among those targeted include directors of companies whose companies are contracted to the City as service providers, properties where the City pays rental and landlords owe the City municipal services, customers who sell and buy properties but owe the City, customers who are currently objecting or appealing the new values of their properties but have not paid the new increases, vacant land properties in arrears, equestrian properties, sectional tittle properties, property owners with debit 

orders in which the City will deduct money from customers with credit or refund to settle the debt for other properties they own. 

Maphologela says the City is aware who their defaulting customers are and will be targeting these property owners with the following Credit Management approached in the following categories:

1. Service Providers to the City 

The City’s service providers who are in arrears with the municipality, including the director’s company properties, will be among the targeted defaulters. The City’s Supply Chain Management (SCM) policy is clear that service providers should not be in 90 days in arrears with the municipality. Should the service providers not honour the debt, the City will first deduct the money that is owed for municipal services before paying the service providers for services provided. In addition, credit control will be affected to the director’s properties whose company municipal accounts are in arrears.

2. Landlords

Landlord in arrears will attract credit control and where the City is inconvenienced as the occupiers of the property, they will pay the municipal debt and set it off against the rent.

3. Property sellers/buyers 

The City will:

• Upon property transfer inform the conveyancing attorneys of the outstanding amount to enable settlement of the debt when the sale is concluded. This will prevent stale debt after the sale by the outgoing property owner.

• Outstanding old debt will be pursued through tracing of the old property owner’s current property within the City and if not in other municipalities. Litigation process will be applied.

• New outstanding debt could be because of contact details not updated therefore new owners may not be aware of the municipal debt, awareness will be exercised, and credit control effected.

4. Objections

Properties owners with objections/appeals and in arrears will be advised that the City

is aware of the objection process underway and refer these customers to the Municipal

Property Rates Act (MPRA) that the municipal bill should be paid until the objection/appeal process is concluded. Where property value will be revised down a refund will be affected with interest. This is intended to prevent future bulk debt that may strain the customers if the property value does not change or increases.

5. Vacant Land

Property owners may not be interested to honour the municipal bill as there is no metered service to terminate. Ownership of other properties will be traced, and services will be terminated on the properties of the same owners representing the debt of the vacant land. If the debt is still not settled, the City will auction the vacant land as this would have demonstrated that the owner can afford more than one property and there in no requirement to provide alternative accommodation on vacant land.

6. Equestrian Properties

These are properties from the value of R20 million and above which demonstrates the appetite for preferred lifestyle by owners. Such properties will not only attract service termination as the owners can clearly afford alternative energy sources such as borehole services, and the City will therefore attach furniture, appliances etc.

7. Sectional Titles

These are property owners governed by body corporates. The City would encourage them to enter a debit order which could be mandatory in the future. That way the

sectional title debt will be migrated from the City’s growing debtor’s book. Notices will be sent to body corporates to assist the municipality with the collection of their trustees/unit owner’s - failure to that the debt of the unit owners will be consolidated and service termination effected to the body corporate bulk service.

8. Debit Order

These are customers whose debit orders are set to a fixed amount and where the billing fluctuates, the debt grows. Full settlement will be encouraged for those customers and flexible debit order amounts set to avoid future arrear debt.

9. Credit /Refund 

These are accounts in credit and account holders also have properties in debt, a set-off project will match the business partners/ identity numbers/ company registration numbers to accounts in debit and set off the credit against the ones in debit to settle or reduce the debt.

“As the City we will continue to go on aggressive campaigns to collect the huge amount of money that is owed to the City.

 Residents should understand that without them playing their part by paying for services they consume; we are unable to render services as a municipality,” said Kgamanyane Maphologela.

Property owners who are struggling to service their accounts for various reasons, are requested to approach the City for further assistance, by means of payment arrangements (Acknowledgement of Debt sign off) to avoid disconnection of services.

Customers may pay using any of the listed methods below:

• e-Joburg Portal: www.e-joburg.org.za

• With EasyPay, facilitating a quick payment option at many shops that you visit on a regular basis, including Pick ‘n Pay and Shoprite Checkers

• Debit orders

• Direct deposits at major banks

• ATMs

• Internet and cell phone banking

• SA Post Office

• Any Council pay-point (Customer Service Centre) – listed below:

o Midrand Civic Centre - 300 - 15th Road, Midrand.

o Sandton Civic Centre – 24 Fredman Drive, Sandton.

o Roodepoort City Hall – C/o Berlandina and Dieperink Streets, Roodepoort.

o Eureka House – C/o Marlborough Street & Rosettenville Road, Wemmerpan.

o Lenasia Civic Centre – C/o Rose Avenue & Eland Street, Lenasia Ext 2.

o Thuso House, 61 Jorissen Street, Braamfontein

o Ennerdale Ext 9 – C/o Katz Road & Smit Street, Ennerdale.

o Eldorado Customer Service Centre – 4046 Link Crescent Avenue, Ext 5,

Eldorado Park.

o Randburg (Civic Centre), Braamfischer drive and Jan Smuts Road, Randburg

Customers who wish to make payment arrangements and do not wish to visit any of the abovementioned walk-in-centres may contact the City’s Credit Control Department by emailing them on creditcontrol@joburg.org.za