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City of Johannesburg warns rates and tax defaulters

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The multi-party led City of Johannesburg has warned rates and tax defaulters that their services will be cut off from now on. And that tenants who fail to pay their monthly rentals will be evicted from the city’s properties.

The city is owed billions by government departments, businesses, and residents.

The Gauteng Government is one of the top offenders and owes the city more than R841 million as of the 1st of January this year.

The Joburg multi-party government says it is aggressively going after government departments, businesses, and residents to recover billions of rand owed to the city in outstanding rates and taxes. And it has warned those who fail to pay, their services will be cut off.

City of Johannesburg admits to a strained relationship with Eskom:

Joburg Finance MMC Julie Suddaby says, “And it is not feasible to think that the city can deliver services to the residents of Johannesburg when we are short of billions of rands. So, starting from today, electricity supply will be cut if you are (not) able and willing to pay for your municipal accounts. Your services will be cut. No exceptions and no holly cows. Services cannot be provided without finance.”

Suddaby’s acknowledged the impact of COVID-19, which has seen some people losing their jobs and struggling to pay for services. She’s encouraged them to apply for the city’s Extended Social Package.

Joburg Housing MMC Mlungisi Mabaso says the city’s social housing entity, JOSHCO, is already owed R196 million by tenants who refuse to pay the full rent amount.

He’s called on tenants to approach the city to make necessary arrangement to settle their arrears, failing which they will be thrown out.

“Those who ignore our call to make payment arrangements leave us with no option but to approach court to get legal relief to execute evictions. Our legal team has been charged with the responsibility to obtain more eviction orders from the courts.”

The Johannesburg Property Company JPC is another entity of the city whose mandate is to manage and develop the city’s property assets.

But according to Joburg Economic Development MMC Nkululeko Mbundu this entity has been hijacked, is riddled with corruption and run by a criminal gang. It is currently owed R140 million including by government, informal traders, tenants and for outdoor advertising.

Last month, its board chairperson was fired for failure to implement the recommendations of an SIU investigation into allegations of corruption and misuse of public funds.

Mbundu has described what is happening at the JPC as one of the biggest heists the city has ever witnessed.

“Now, what is happening in this institution is, they give leases to their friends at ridiculously undervalued amounts who then flip and sublease at exponential amounts which then comes back as legitimate rental income. Let me give an example, you get a lease for R500 on a prime property and you go and rent it out for 100-thousand rands. And that is seen as legitimate income. That is why a lot of top politicians are frequently at the Joburg Property Company, literally in the building.”

He says he is now getting death threats… “I received death threats yesterday. Funny enough I am not afraid. Why, because we are acting against them. Interestingly enough we fired the chair and a week later im told I must watch my movements. We are going to fix the city. No amount of threat is going to stop us – I don’t care how powerful they are, how rogue they are, I don’t care how dangerous they are. We are going to take it back.”

Joburg Public Safety MMC David Tembe says inroads are also being made into curbing corruption at motor vehicle licensing units and the Joburg Metro Police Department.

“Our Metro Police is perceived that they are notorious for asking cool drink. Some are collecting fees from street vendors, some from hijacked buildings. So, it must start with us. Buya Mthetho is back under the multi-party government. Ubuyile Umthemto, we will not tolerate officials taking bribes. We are reviving the Anti-Bribe unit and strengthening our undercover unit to fight corruption.”

The Joburg multi-party government says it has identified seven strategic objectives which include getting the basics right, and ensuring a safe and secure city that will help it deliver services for residents

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