Level 6 water restrictions and City writes off 1bln a year in terms of uncollected revenue.

Per advices from the City:

“The proposed drought charge is‚ to be implemented from February 1 if Finance Minister Malusi Gigaba gives the go-ahead. A resident with a property valued at R600,000 could expect to pay R35 a month and a commercial property owner whose building is valued at R500,000 may pay R60 a month.

“The reason for this is simple: our survival‚ we all simply need water to survive‚” De Lille told the council. She added that lower water consumption meant the city council was facing a R1.7bn shortfall in water revenue.

The temporary charge will be in place for four years and the city is looking to raise R1bn a year. Residents associations‚ business and opposition parties have harshly criticised the city council for the proposal‚ saying it had failed to act early to avert water shortages brought about by the drought.”

And

“De Lille said the implementation of a drought charge was subject to approval from the Minister of Finance asking of an exemption from provisions in the Municipal Finance Management Act to implement a drought charge from February 1. If council approves the proposal, a public communications campaign will follow until mid-January.

Once public comments had been considered, it would be considered by council at the end of January as part of the adjustment budget, she said.”

No mention of the fact that the City writes off 1bln a year already in terms of uncollected revenue (15% of its revenue), who owes this money, why it is not being collected and why this has not been disclosed to the Public. In the last 10 years the City has written off over 9bln of its Water revenue with no explanation provided in its financial statements.

Click on the link below to see the gazette details on Level 6 water restrictions.

Provincial gazette level 6 excerpt

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