Pretoria - The City of Tshwane cannot afford to keep subsidising its debtors in commercial properties, government and residential areas at the expense of services and its financial wellness.
This was the unwavering messages by Executive Mayor Randall Williams and Acting City Manager Mmaseabata Mutlaneng who led an aggressive campaign to disconnect water and electricity supply to businesses and government departments.
Williams pushed back as business managers tried to plead with him to allow them to continue operating with the lights on and stated that the culture of non-payment in Tshwane has created an unsustainable problem and a ballooning debt of R17 billion owed to the City.
Williams said it was not acceptable that business and government departments were making sporadic payments but continuing to consume more than they pay on a monthly basis.
Tshwane mayor Randall Williams involved in a blow-by-blow exchange with Sheraton Hotel manager, Pascal Fouquet as the City cut water and electricity to various businesses who have not paid bills. @SheratonPta #Sheraton @Eskom_SA #Water #Electricity pic.twitter.com/KQJpEqLJmI
He said the City owed Eskom (R635 million in arrears) but the City was paying its suppliers like Rand Water and Magalies Water irrespective of hardships. However, it was not making the money back because businesses were holding R5 billion due to the City.
Uninterested in a blow-by-blow exchange with Sheraton Hotel manager, Pascal Fouquet, who pleaded for leniency for the hotel owing the City R23m for water, electricity and rates, Williams said he was acting on behalf of the City and its residents who needed service delivery.
Fouquet said: "The last two years we have not been making money because of Covid-19. We tried to make arrangements with the City but what they want we cannot afford to pay. If you do this then what happens to the people who need their jobs?"
Willaims said businesses around the world have endured the strain of Covid-19 and so did the municipalities but they adjusted and found other ways to manage their businesses. He said residents of Tshwane have been complaining that service delivery was down.
He said businesses, embassies and government departments must learn to best run their businesses without expecting the City to subsidise them. He said it could not be right that the hotel consumes R1m in services a month but wants to pay R300 000 and occasionally make a larger payment.
Speaking to the media, Williams said: "We are obligated, in terms of the municipal legislation, to recover money due to the City. It is not something we can do voluntarily. We have been doing it for some time but now we are escalating it to turn it into operations and become more visibly active so that people can see that.
"Businesses in the City owe us more than R5bn. Residents owe more than R8bn and if you look at government departments and embassies, they owe us more than R1.3bn. We are going after all our debtors because they have an obligation to pay. You cannot consume for free."
Asked if the businesses were not raising a valid point that they could not afford to pay because of Covid-19 and that they also needed water and electricity to remain active and save jobs, Williams said the City would be easy if these businesses approached the City and made payment arrangements because consuming without paying was just not a sustainable option.
"The City is in a financial crisis. We need to get all the revenue in. You can see service delivery is falling. We have less money available to fix street lights. Less money availability to fix potholes. This needs to change, and if you look at what has been happening all around the world businesses have adapted. South African businesses will also have to adapt according to the business circumstances.
“They cannot just say 'because now there is Covid-19, for us it is business as usual. The City must just subsidise us," Willaims added.
The City disconnected various businesses and some government buildings.
Pretoria News