Tshwane halts services to customers who don’t pay

South Africa’s Tshwane municipality, which includes the capital, Pretoria, began cutting off electricity and other services to customers whose outstanding debts it said have grown to unsustainable levels.

Businesses collectively owe the municipality more than R5 billion, residents more than R8 billion and government departments and embassies more than R1.3 billion, Randall Williams, the executive mayor, said in a recorded interview circulated by his office on Wednesday.

[HAPPENING NOW] The City’s debtors book currently stands at over R17 billion with national government departments, embassies, businesses and residents failing to pay. The City is now disconnecting services to all. #CoTRevenueCollection #TshwaneYaTima @CityTshwane pic.twitter.com/8l9FQDX5Bo

— Executive Mayor, Randall Williams (@tshwane_mayor) February 9, 2022

The big culprits of the day Department of Investructure Development (owing us R245 million), and Department of Public Works ( owing us R110 million). #TshwaneYaTima #CoTRevenueCollection pic.twitter.com/md8tgwtpbX

— City of Tshwane (@CityTshwane) February 9, 2022

After much resistance, and intimidation, we finally switched off Denel! We treat all our customers the same without fear or favour. #TshwaneYaTima #CoTRevenueCollection pic.twitter.com/b8tTZrM0pV

— City of Tshwane (@CityTshwane) February 9, 2022

“We are going after all our debtors because they have an obligation to pay. You cannot consume for free,” he said. “How do we afford to run the operations of the city if we have no revenue?”

An opposition coalition led by the Democratic Alliance retained control of Tshwane in last year’s municipal ballot. The vote saw national support for the ruling African National Congress drop below 50% for the first time since it won power in the first multiracial elections in 1994, a backlash against its shoddy management of South Africa’s towns and cities.

Moody’s Investors Services rates Tshwane’s debt at Caa2, eight levels below investment grade, and changed the outlook it its assessment to negative from stable in October, saying liquidity shall continue to be fragile in the medium term.

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