The City of Johannesburg's aim to collect an additional R1 billion in revenue from residents is implausible, because of ongoing issues with its billing system, argues the Democratic Alliance (DA).
The city yesterday presented its adjusted annual capital and operating budget for 2011/12. It adjusted revenue from R33.8 billion to R34.5 billion.
However, the DA argues that this level of revenue would require a collection rate of over 100%, when the city's actual collections are at about 87%. Councillor Makashule Gana says collection levels are low, because of inaccuracies with bills.
The city has had ongoing problems with its billing system, Project Phakama, which it implemented at a reported cost of R1 billion. Post-implementation problems have led to grossly inflated invoices.
Gana says about 13% of bills being sent out are inaccurate and some people have stopped paying because of billing errors. He says resolving the issue should lead to a 94% collection rate.
Councillor Patrick Atkinson, DA finance spokesman, says the city's “over-optimistic projections of revenue collection are only likely to deepen the city's already serious financial problems”.
The city was not able to immediately comment. However, it has previously indicated that billing accuracy will be improved by the end of this month and that customer data will be improved by mid-year.
In November last year, member of the mayoral committee for finance, Geoffrey Makhubo, said normalising the billing situation is a priority.
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