The DA's three-step plan to turn Johannesburg's billing crisis around
Johannesburg's billing crisis has impeded the ability of our City's administration to effectively collect revenue, thereby reducing the amount of money available to deliver basic services to residents, especially the poor. The DA understands that central to the creation of opportunity at a municipal level is a system of clean, efficient, business-friendly government.
Reforming Johannesburg's billing system is a crucial first step in creating such a system, and in turning around the performance of our city's administration. If elected, a DA-run Johannesburg would seek to reform revenue collection and delivery by implementing a decisive three-step plan as a matter of urgency.
The people of Johannesburg thus face a clear choice between the party that has led Johannesburg into this crisis, whilst failing to recognise the significance of the problem, and a party that has a proven record of success and a decisive plan to improve our city's ability to deliver for all.
The first step in ensuring effective service delivery and financial viability for any municipality lies in proper revenue collection. If a city is unable to efficiently collect revenue for the services it offers its citizens, fewer resources are available to maintain existing infrastructure, or expand service delivery to the poor.
The DA has proven experience in turning around similar billing crises - most notably in Cape Town, where the DA-led coalition government managed to transform the defective billing system it inherited when it took office in 2006.
In 2006, Cape Town's debtors owed the city R4 billion in unpaid rates and service charges, according to the City of Cape Town's 2006/07 Annual Report. However, four years later, the National Treasury's report on local government budgets, Local Government Budgets - 2009/10 Financial Year, praised Cape Town for collecting the highest proportion of its budgeted revenue of any metropolitan government in South Africa (96.4%).
In proposing a solution to Johannesburg's billing problem, it is important to bear in mind that system errors, structural problems with the system and defective data will take some time to resolve.
However, there are three proactive steps that a DA-run City Council will take as a matter of priority to tackle immediate problems:
Initiate a thorough and independent review of the SAP billing system:
A DA-run administration would commission the relevant IT experts to spend no more than 2 weeks identifying key issues to resolve systemic problems with the SAP system and devising solutions. Following the completion of the review, the City Council will make public how long it predicts the resolution of the system's problems will take. A similar review was undertaken by the DA-run coalition in Cape Town in 2006, and proved to be very effective.
Appoint a debt-busting task team:
Using much the same approach as SARS did in the 1990s, a team of accountants will be appointed and given nine months to significantly reduce the City's R10,6 billion debt bill. Most of this team's retrieved debt will be used to reduce Johannesburg's overall debt burden, reduce annual interest charges payable by Johannesburg and free up funds that can be channeled into service delivery. Measurable targets for debt collection will be set, and regularly monitored and reported on. Much of the City's debt is owed by large institutions, public and private, which can in fact afford to pay.
Roll out key interventions in the first 100 days:
First, a dedicated helpline will be established, staffed by a specialist task team, to assist residents who think that they have a legitimate problem with their bills. Second, a proper query procedure will be implemented. Third, the timeline for addressing customer queries will be confined to a maximum of 7 days. These initiatives will help to ensure that billing queries are dealt with professionally and accurately.
This approach will have three major implications. First, it will tackle the billing and rates collection backlog. Second, it will help to ensure that all new bills are correct and that residents' queries are dealt with accurately and professionally. Lastly, it will address long-term systemic billing problems by investigating and rectifying the problems in the current SAP billing system.
Collecting revenue and implementing sound financial management systems is the first step to ensuring that Johannesburg delivers basic services to all. The DA has a clear plan and a track record of success in this regard.
The DA believes that if the City of Johannesburg, under the leadership of a DA-led city council, takes the steps outlined above, we can turn our city's system of revenue collection around, improve service delivery and create opportunity for all of our city's people.
Statement issued by Mmusi Maimane, DA Candidate for Mayor of Johannesburg, April 17 2011
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