Municipal authorities in the City of Johannesburg have warned thousands of defaulting residential property owners and businesses that they face blacklisting if they fail to settle their debts, which collectively amount to over R40 billion.

With a mounting municipal debt exceeding R52 billion, the city has launched aggressive credit control campaigns to tackle the issue head-on.

City CFO vows action on defaulting businesses and property owners

Tebogo Moraka, the Group Chief Financial Officer, emphasised the city’s commitment to recovering the outstanding funds, stating, “Business and domestic customers who perpetually default will soon be targeted by our specialised team as part of the City’s aggressive credit control campaign.”

Moraka highlighted that these efforts are essential as the city also has financial obligations to entities like Eskom and Rand Water.

Moraka outlined the criteria for potential blacklisting, indicating that customers with accounts in arrears for more than 61 days, who have repeatedly ignored communications and notices from the city, are at risk.

He explained, “These customers are those who would have gone through all the City’s processes to get them to pay their debt but had simply ignored all communication from the City.”

The City of Johannesburg has established a Specialised Revenue Collection Team to focus specifically on recouping debts from defaulting payers.

The City has exhausted all other avenues before resorting to blacklisting

According to Moraka, customers who have failed to respond to previous warnings and notices will now face consequences. He emphasised that the city has exhausted all other avenues before resorting to blacklisting, including issuing pre-termination notices and final demand notices, as well as sending SMS reminders and making phone calls.

In addition to pursuing blacklisting, the city will take stringent action against illegal service connections, considering them a serious offense.

Moraka warned that those found guilty of illegal connections face criminal charges, hefty fines, and immediate disconnection of electricity and water services.

Acknowledging that some property owners may be struggling to service their accounts, Moraka urged them to approach the city to make payment arrangements and sign an acknowledgment of debt to avoid disconnection.



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