The City of Johannesburg's (COJ's) billing system issues have affected 1.5 million accounts and frozen the sale of thousands of homes.
This is according to VDM Incorporated director Cor van Deventer, who adds that property transfers across the metro have stopped because of the city’s electronic billing and payments platform “collapse”.
“Thousands of homebuyers and sellers are unable to progress with their property transactions, and clients are becoming increasingly frustrated,” he says.
The South African Institute of Valuers explains that the Deeds Registry Act prohibits the Registrar of Deeds transferring a property without a clearance certificate from the municipality which “certifies that there is no current outstanding debt due, by the seller, on the property”.
Henrietta Botha, director of law firm Fairbridges, notes in a blog post that these certificates are “indispensable”. Yet, she writes, “in some municipalities around the country obtaining them has morphed into a near-Herculean task. Weeks stretch into months, even a year, as attorneys and property owners alike wait in bureaucratic limbo.”
Of the approximately 1.5 million municipal accounts serviced by the city, many are currently waiting for payments to reflect, clearance figures to be generated, and property transfers to be finalised, notes Hannah van Deventer, director at Phoenix Bonds.
History repeats
ITWeb reported earlier this month that the COJ was again battling to stabilise its SAP-based enterprise resource planning (ERP) system, a project aimed at improving municipal billing accuracy.
Comments circulating on WhatsApp groups, where angry residents have been venting frustrations, point to a synchronisation failure following a significant SAP ERP upgrade.
The metro faced similar SAP-related challenges before. In 2011, ITWeb broke the news that 65 000 account holders were affected by inflated bills and threatened with disconnection.
Those problems were linked to the city’s 2009 SAP implementation, Project Phakama – a R580 million initiative at the time – intended to consolidate multiple legacy billing systems onto a single SAP platform. Then mayor Amos Masondo denied there was a crisis, stating that only 8% of residents were affected.
Cor van Deventer puts the blame squarely on the city’s SAP upgrade project. “The SAP/Phakama Project has suffered repeated failures.” Instead of it creating a single, unified system for all billing functions, the SAP/Phakama Project has suffered repeated failures, he says.
Waiting game
Hannah van Deventer adds that, when the city’s systems are offline, the entire process of transferring homes stops.
“No figures can be issued, no certificates can be generated, no progress can be made, and no one – not bond consultants nor attorneys – can assist manually because it’s an electronic system,” she says.
“These transactions are particularly time-sensitive, with downtime meaning delayed move in dates, extended occupational rent, and financial commitments that can no longer align with the original transfer timelines,” says Hannah van Deventer.
No ‘issues’
In response to a request for comment, the COJ referred ITWeb to a 3 February statement in which it said it was “aware of social media messages suggesting that some customers’ municipal payments are not reflecting on their statements”.
In the statement, it says these claims are “incorrect”. The city notes that payments made through official channels continue to be processed and reflected on customer accounts.
Kgamanyane Maphologela, director of communications and stakeholder management in COJ’s Group Finance unit, added that allegations that customers with up-to-date accounts may be disconnected due to these issues is also “incorrect” as “this is not the case”.
“Customers whose accounts are in good standing are not subjected to credit control disconnections, in line with the city’s credit control policy. Residents are encouraged to rely on verified city communication platforms and to exercise caution when engaging with unconfirmed information circulating online, as such messages may cause unnecessary concern,” Maphologela adds.
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[CAPTION] The City of Johannesburg says there are no “issues” with its billing system.
Maphologela says the city further confirms that customer service centres are operational and continue to accept payments as usual.
“These centres remain a trusted option for residents who prefer in-person services. The city remains committed to providing secure and reliable payment systems and will continue to keep customers informed through official communication channels,” he says.
Cor van Deventer notes conveyancers are not neglecting home sellers and that as soon as “the city’s system is restored; every file will move forward immediately”.
Hannah van Deventer adds that “with no manual workaround option available, the backlog is growing daily but all we can do is wait for the city’s system to be restored. The delays are not caused by conveyancers, bond originators, or rates consultants – what we can do, however, is share updates and fact-checked information as soon as it becomes available.”
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