City of Joburg owed R1.4bn by defaulting residents

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City of Joburg owed R1.4bn by defaulting residents
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All Gauteng municipalities - including the three metropolitan councils of Joburg, Tshwane and Ekurhuleni - are collectively owed a whopping R2.7bn due to the coronavirus pandemic.

Johannesburg - The City of Joburg suffered losses of more than R1.4 billion due to residents defaulting on their municipal rates and services just in April and May, since the outbreak of Covid-19.

The questions arose after Finance Minister Tito Mboweni on March 30 asked municipalities and their entities to refrain from taking action against residents who are defaulting on the payment of their services during the lockdown. This led to thousands of defaulters flocking to municipal offices to sign debt-settlement agreements to avoid spending the winter in darkness and without running water.

Reacting to the figures, Randall said if this trend in revenue loss continued, municipalities would struggle to render services to its residents.

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