Mogale City Local Municipality led by its Chief Financial Officer (CFO) has unleashed strict debt collection and credit control measures to increase the municipality’s revenue.
Together with the municipal Finance team, Energy and Water Services as well as Public Safety officials, the CFO last Friday descended on over 15 businesses in and around the Central Business District disconnecting defaulting businesses from electricity and water supply. This is despite having received their account statement, default letters and summons, which appear to have been ignored by these businesses.
According to the CFO, the municipality decided to roll out the Mogale Ya Tima campaign following thorough consultation processes. The campaign is expected be an ongoing drive targeting defaulters and disconnecting their utility services supplied by the municipality.
The city is also aware of businesses’ plea to permit them to continue operating using supplied services, thus allowing them to rake in revenue and consequently service their defaulted accounts – a request that the municipality could not accede to as it promotes a growing culture of non-payment for services that places severe strain on the municipality’s revenue and accordingly its operations. This stern approach is not only in line with ensuring that no business continues to operate with impunity, but also strike and manage a balance for businesses making sporadic payments but continue to consume more than they for pay monthly.
Some of the businesses and units of flats switched off include Kismet Star in Azaadville owing R1,012 million for water, Villa Egoli in West Village on a R1,1 million water default, Valley Lodge Hotel owing R2,1 million for services and Black Horn Group in the CBD owing over R1 million for water and lights.