City of Johannesburg Takes Tough Stance on Debt Recovery, Collecting R13.2 Million

The City of Johannesburg is cracking down on debt, successfully recouping a substantial sum of R13.2 million from both councillors and permanent employees who had fallen behind on their payments.

The sweeping action, conducted as of July 31, 2023, saw over R7 million deducted directly from the salaries of those who had accrued outstanding municipal bills. According to IOL, the City recovered R5.2 million through direct payments from the defaulting councillors and employees.

This committed approach underscores the City’s determination to reclaim what is owed, even if it entails targeting its workforce. By doing so, the City sets a powerful precedent that no one is exempt from fulfilling their financial obligations.

A statement issued by the City indicated that it was diligently applying pertinent legislation and its Credit Control and Debt Collection Policy to retrieve the overdue amounts.

Statistics reveal that out of the 13,323 employees indebted to the City, 140 are councillors, and the remaining 13,183 are staff members.

The councillors owe an accumulated R3.1 million for overdue municipal services. At the same time, the managerial echelons – encompassing chief executives, department heads, directors, and supervisors – are accountable for a significant R9.8 million.

The remaining balance of R76.3 million is likely with junior staff members.

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Kgamanyane Maphologela, the Director of Customer Communications for the City’s Group Finance Department, reiterated the City’s firm stance on debt recovery.

“Our action against our own employees underscores our unwavering commitment to pursuing those with outstanding municipal bills. Our Credit Control policy is applied indiscriminately, even to our employees who should be exemplifying responsible financial behavior,” Maphologela stated.

He further disclosed that many of the employees with debt had proactively entered into payment arrangements with the City.

Maphologela highlighted the City’s adherence to the Municipal Systems Act 32 of 2000, which stipulates that municipal staff members cannot remain in arrears for more than three months. After this period, the municipality has authorisation to deduct outstanding sums from the employee’s salary.

“The City is sparing no effort to recover municipal debt, as it significantly impacts service delivery,” Maphologela emphasised.

He warned that in the coming weeks, the City plans to intensify its Credit Control drive throughout Johannesburg to recoup outstanding revenue from all property owners.

Maphologela encouraged property owners facing financial constraints to proactively engage with the City and consider signing an acknowledgement of debt to prevent service disruptions.

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Picture: Unsplash / Tania Melnyczuk

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