Despite collecting half a billion rand for the municipality, The City of Johannesburg has told its debt collectors it cannot pay them for the work they have done, despite their having collected debt.
Ninety-three contracted companies have not been paid in six months.
Some of these companies have had to retrench employees as a result, according to New24.
The City brought in the debt collectors to bolster its massive R80.9 billion budget, which can only be achieved if the City increases its revenue collection.
In the last financial year, the City only collected 75% of the revenue. The revenue collection norm is 95%, according to National Treasury.
The City has put pressure on residents by introducing substantial rate increases on top ofa valuation increase this year.
On Wednesday, DA Johannesburg caucus leader Belinda Kayser-Echeozonjoku released a statement about the failure to pay the debt collectors.
She would not reveal the names of any of the debt-collecting companies because they had asked for anonymity, since they depended on work from the City.
‘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.’