R500m collected yet Joburg suppliers go unpaid

18 October 2023

The Democratic Alliance (DA) has been reliably informed that 93 companies appointed as part of a panel of debt collectors have not been paid for 6 months.

These companies collected half a billion rand’s worth of debt for the city in the same period.

The DA has been warning that Johannesburg is on the brink of collapse. A clear indication of this, is an ever-growing list of unpaid suppliers.

In a meeting held last week between the City Group Finance Department and the aforementioned Debt Collectors, the city informed them that despite the R500 million they had collected in January and February 2023, they would not be compensated for services rendered. The motivation behind the city’s illegal use of Johannesburg Metro Police Department (JMPD) roadblocks as a means of rates and tax collection is now evident.

Yesterday, reports surfaced that yet another creditor, AfriRent – rendering refuse collection services, has not been paid. Refuse will thus soon go uncollected. As suppliers go unpaid, basic service delivery collapses and delayed responses from Joburg Water and other entities have become the norm. The executive should not be surprised when they are voted out come the dissolution of council.

Amongst other projects halted, Region E projects halted due to non-payment are:

Linbro Park Landfill site upgrade and;

Klipfontein view Road Rehabilitation

While Joburg residents experience extended ANC sponsored blackouts, a water crisis, empty promises from the Doomsday Coalition, the MMC of Finance hosts an ANC Fundraiser and the Executive Mayor is in Europe.

We will not stand by while the city’s revenue is directed to ANC-EFF-PA election campaign fundraising. We are therefore submitting a PAIA request to know how much revenue , debt collectors collected on behalf of the city between January – June 2023

We will also be posing questions to the MMC of Finance to ensure transparency. Any questions that do not get a sufficient reply, will be met with a PAIA request. Residents of Johannesburg deserve to have a functioning government.

Issued by Belinda Kayser-Echeozonjoku, DA Johannesburg Caucus Leader, 18 October 2023