City of Joburg demands CEOs pay up

In a statement issued on 5 March 2024, the city emphasised that this initiative is an all-hands-on-deck operation involving participation from the city manager, city department heads and directors. It will actively pursue owed payments by visiting companies and organisations indebted to the city.

“The mandate is clear, whereby the city’s senior management team goes knocking at the doors of companies’ CEOs demanding money for services rendered. We don’t leave the business premises until there is an immediate downpayment towards the outstanding debt,” said Tebogo Moraka, the city’s group chief of financial officer.

Moraka said that the campaign successfully recovered over R200 million between 1 February and 20 February 2024.

Commenting on the methods the CoJ uses to recover these debts, Moraka said: “The hard truth we tell these CEOs is that the city will no longer be able to supply them with critical services such as water and electricity, which are crucial for their businesses to operate if they don’t pay for what they have consumed.

“If there is no firm downpayment on the day we visit these businesses, we are left with no choice but to immediately switch their electricity and water off,” Moraka continued.

The city’s CFO also noted that the CoJ is currently engaged in legal disputes with certain businesses adamantly refusing to settle their outstanding debts. Additionally, he revealed that the city has served summonses to over 1 000 business and property owners, awaiting court judgments since October 2023.

The CoJ told Moneyweb that they are unable to disclose the names of the companies involved.

*Terri-Ann Brouwers is a Moneyweb intern.