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Rustenburg municipality disconnects defaulting customers, collects over R90m

───   LUCKY NKUYANE 14:42 Wed, 11 Dec 2019

Rustenburg municipality disconnects defaulting customers, collects over R90m | News Article

The Rustenburg Local Municipality in the North West has begun the process of disconnecting defaulting customers for services rendered by the municipality and in the process recovered over R90 million in revenue collection.


The municipal spokesperson, David Magae, tells OFM News that the move by the municipality follows a roll-out of the revenue collection campaign at the beginning of last month. He adds that the financial viability of the municipality, among other key issues, is ensuring that payments are collected for services rendered to avoid financial bankruptcy which will affect operational obligations. Magae says residents and businesses must bear in mind that without revenue collected for services rendered, the municipality’s optimal functionality, as well as its financial obligations, will be compromised.

OFM News previously reported that equitable shares of 15 municipalities in the province have been withheld by the Provincial and National Department of Treasury

after these municipalities adopted unfunded budgets and failed to comply with directives from Treasury.

He adds that the R90 million collected is for both water and electricity supply. Magae also says the campaign led by the municipal mayor, Mpho Khunou, was to ensure that it roots out any illegal connections to both electricity and water sources. He further stresses that the municipality’s account with the troubled power utility Eskom and the various Water Boards are up to date. “The municipality generates over 89% of its revenue while relying on the national government grants for the other 10%,” he adds. “The municipality urges residents and businesses to ensure that accounts are paid and up-to-date and where there are disputes, current accounts be paid in full while the processes set out to address billing queries run their course,” Magae adds.


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