City of Tshwane municipal workers get ready to cut off from the power grid one of the defaulting businesses as part of a revenue collection campaign dubbed "Tshwane Ya Tima".
Image: Photo: Supplied/ City of Tshwane
The City of Tshwane's revenue collection campaign dubbed "Tshwane Ya Tima" has turned up the heat on big business in Pretoria, cutting off their power supply in an effort to recover a staggering R30 billion in collective debt owed by customers.
Mayor Nasiphi Moya initially identified Shoprite as one of the defaulting customers, owing a substantial debt of R7,343,502.57.
However, the claim has been retracted, as it was discovered that the debt was incorrectly attributed to Shoprite.
The actual debtor is KNG Properties, which happens to be Shoprite's landlord.
Moya said: “They've clarified that they are the client. I apologise for the misattribution and appreciate the correction - the issue lies with their landlord, not Shoprite.”
She said the Tshwane Ya Tima operation has been relaunched to crack down on businesses that have failed to pay their municipal bills.
The Sheraton Hotel has been hit with recurring power cuts due to its failure to settle a significant outstanding electricity bill of R1,418,109.42.
Moya said the hotel repeatedly defaulted on its payment obligations to the City, despite previous power disconnections, necessitating additional measures to recover the debt.
She said: "They (businesses) know what they need to do; they need to approach us and make a payment arrangement if they can't afford their bill. Big businesses must do the right thing; they must learn to comply. More and more, we are realising that they have been too relaxed and hardly do the right thing."
Additional businesses targeted by the City's revenue collection efforts included the Braai and Barbeque in Pretoria West, with an outstanding debt of R1,409,456.14, and Powertech Transformers, also located in Pretoria West, owing R1,192,242.28.
Moya revealed that Powertech Transformers made a timely payment of their outstanding bill, narrowly avoiding a planned electricity disconnection by the city.
“The fourth stop is at the Homii Building on Helen Joseph Street. The owners owe the City R2,177,334.54. We spoke to the manager over the phone and he only managed to pay about R350, 000, which isn’t enough. We’ve switched them off,” she said.
Another major defaulter was Bothongo Plaza, located on Francis Baard Street, with its owners facing a significant debt of R5,917,109.11 owed to the city.
“We warned a person not to use the elevator because we were about to switch off the electricity supply,” Moya said.
The City's revenue collection campaign follows a recent council report that proposed debt relief for businesses with outstanding accounts.
The report suggested a 100% write-off for debts older than three years, offering a potential lifeline to struggling businesses.
To be eligible for the debt relief, businesses must pay in full all outstanding debts accumulated within the past three years.
Additionally, businesses can benefit from a 100% write-off of interest and miscellaneous charges, provided they settle their entire outstanding debt incurred within the last three years.
By accepting the initial offer, the city stands to immediately recover R2,652 billion, while waiving a significant R3,976bn in debt.
Under the alternative offer, the city expects to collect R1,916bn immediately, while forgiving R2,381bn in interest and miscellaneous charges.