J O BU RG A D V O CA CY G RO UP (J A G)

Working for best practice governance in the City of Johannesburg

Joburg Billing Crisis and Cut-Off Campaign Information for Residents and Businesses 30 November 2011

About the Joburg Advocacy Group (JAG) The Joburg Billing Crisis Campaign is a campaign of the Joburg Advocacy Group (JAG), an independent, non-aligned and voluntary civil society advocacy group, working for best practice governance, social justice and environmental protection in the City of Johannesburg.

For residents associations and community groups in the City of Joburg. You may find the following information with regard to the billing crisis and the current cut-off campaign useful: 1. The city MUST give residents two weeks notice of the intention to cut services. It is illegal to cut services without this notice and there is a ConCourt ruling that has established this precedent.

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2. The city can only cut electricity if the residents electricity account is in arrears. They cant cut electricity to recoup arrear rates or any other charges. This was confirmed by NERSA in 2009 and is specified in the citys licensing agreement. 3. The city cannot cut off residents water supply completely as this is prohibited in terms of the Constitution. They can restrict water supply, but must leave residents with access to at least a trickle of piped water sufficient to meet basic needs. 4. Feedback from councillors dealing with cut-offs indicates that most of the complaints theyve received are from residents who have disputes over billing, but who have been cut off anyway. Only a few queries have come in from people whore genuinely in arrears and, in that case, theyre being advised accordingly. 5. So residents whore in arrears and have been cut off need to go to the nearest walk-in centre to make arrangements to pay off their arrears. Once theyve done this, they can arrange for services to be reconnected. A reconnection fee of R650 will be charged if this is a first cut-off. 6. Residents with unresolved billing disputes whove nevertheless been cut off (or whove received a cut-off notice) can now call one of the two councillors the DA has dedicated to assisting residents with billing problems. The best person to contact is Councillor Linus Muller, whos on the Finance Committee, and his number is 082 904 9223. He will need the name of the account holder, the account number and the residents 8000 complaint reference number (issued by either Joburg Connect or one of the walk-in centres). He cant assist without this, as it proves the account is in dispute. Residents must insist on a reference number when laying a complaint many report that city officials are refusing to give complaint reference numbers. 7. Residents also have the option of applying for a court interdict to compel the city to reconnect their services and to render an accurate statement of account. This can be done through any attorney. Costs vary, but residents should expect to pay between R2,500 and R5,000 for this to be done. The attorney should apply for the motion with costs so that, if it is granted, the city will have to cover the complainants legal costs. 8. Other forms of civil legal action, such as class action lawsuits and ConCourt challenges are effectively beyond the reach of ordinary residents, as these are expensive and most legal firms require a deposit in the region of R50,000 to initiate an action of this kind. These options also offer no guarantee of a positive outcome, and can take months - even years - to be heard and for a judgement to be handed down. For this reason, we suggest affected residents consider laying criminal charges if they believe these are warranted. 9. Affected residents who suspect that they are being defrauded by the city can lay a charge of fraud. To do so, they can contact the Johannesburg office of the SAPS Commercial Branch on 011 870 5312. They can e-mail the central office in Pretoria for further information on commercial.hq@saps.org.za. They should name the Mayor, Parks Tau (the citys CEO), as the respondent if they do lay a charge.

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10. Residents who are intimidated by city officials sent to cut off services can lay a charge of intimidation at any SAPS station. They will require the name of the official involved to do so. 11. Residents who are intimidated into paying disputed amounts under threat of cut-offs, blacklisting, legal action etc. can also lay a charge of criminal extortion preferably with the SAPS Commercial Branch. Again, the Mayor should be named as the respondent. 12. NOTE: Residents whose accounts are in dispute are not obliged to sign cut-off notices and shouldnt be intimidated into doing so. We suggest that they just specify on the termination notice that the account is in dispute and give the complaint reference number. They should then immediately call Councillor Muller to ensure that theyre not disconnected. 13. NOTE: Some residents report being asked for a cash reconnection fee of anywhere between R350 and R1,250 by city officials to have their services reconnected. This is not a valid fee and officials asking for payments of this kind are effectively asking for a bribe. They should be reported to the SAPS and to the City Manager, Trevor Fowler. Residents will require the name of the official involved in order to do so. 14. Finally, residents associations have the option of joining the National Taxpayers Union (NTU) for a subscription fee of R20 per household per year. The NTU can then assist RAs interested in initiating campaigns to withhold the payment of rates for the non-delivery of services (including accurate bills) in terms of the legal principle contractus non adempleti (unfulfilled contract). There is legal precedent to support this option and the NTU offers free legal assistance to members withholding rates in the event of frivolous legal action on the part of the municipality.

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