Thousands of residents are taking the City of Johannesburg to court next week in a bid to stop it shutting off electricity and water amid an ongoing issue with its billing system.
Yesterday, several top city officials and entities such as City Power and Johannesburg Water were served with papers by Schindlers Attorneys, Conveyancers and Notaries on behalf of 13 entities, which represent more than 200 000 residents, in a bid to stop it allegedly illegally disconnecting consumers.
The motion argues the city does not follow several laws when it threatens cut-offs because bills have not been settled, and that it also coerces consumers into settling their accounts when the amount due is in dispute.
The urgent application, which will be heard in the South Gauteng High Court next Thursday, is being brought as a direct result of the city's dysfunctional billing system, which has led to thousands of residents receiving inaccurate or grossly inflated invoices.
Johannesburg started moving its disparate systems onto a SAP platform towards the end of 2009. However, it has had several issues with the post-implementation phase of the project, which reportedly cost taxpayers about R1 billion.
Fed up
Maurice Crespi, managing partner at Schindlers Attorneys, Conveyancers and Notaries, says the application, which has also been brought in the “public interest”, seeks to force the city to follow the law when cutting services.
Crespi says: “If the city cuts you off, it must stick to the law, it's as simple as that.” The city cannot have a system in which people must pay erroneous bills and they are only allowed to argue about the invoices later, he adds.
The city's chaotic billing system previously resulted in a protest march, criminal charges being laid against top executives, and the intervention of the National Consumer Commission.
In addition, the Johannesburg Attorney's Association previously threatened to take the city to court in a bid to force it to clear a backlog of outstanding clearance certificates, which was holding up the transfer of property.
Last month, Johannesburg launched a revenue and billing roadmap that aims to fix the issues with its problematic billing system over a period of 19 months.
Legal labyrinth
The application is being brought under several laws, including the city's own by-laws, the Consumer Protection Act (CPA), the Municipal Systems Act and the Constitution, says Crespi. He says, in terms of the CPA, people cannot be harassed or coerced into paying a bill that is under contention.
The applicants argue the city must accurately calculate bills, or use “reliable” estimated meter readings; not estimate readings for more than six months; provide accurate statements on a regular basis; allow a reasonable amount of time to pay; give consumers 14 days' notice if they are about to be cut off; and not threaten to disconnect residents if their bill is in dispute.
The notice of motion alleges the city has breached its responsibility to bill consumers correctly and to read meters. It also argues that it has failed to apply the correct tariffs, reverse or adjust interim readings, allocate payments and allow consumers the right to appeal, among other issues.
Crespi says the city's action of threatening to cut services, despite a query on the account, amounts to coercion, which is a contravention of the CPA.
The Democratic Alliance (DA) has slated the city for cutting services to residents and businesses when their bills are in dispute and queries have not been resolved. The party argues the city has embarked on an aggressive credit control process to collect arrears that are the result of the billing crisis.
DA shadow finance MMC Patrick Atkinson has said the city's collection rate has been lower than it should be, leading to a year-old R1.3 billion shortfall in collections.
Crespi says the legal motion is the result of the city's billing crisis, which has also led to countless instances in which people cannot open new accounts after buying property. He adds that this has, for example, led to previous owners paying rates on a property that they do not own. “Menial tasks such as opening an account are not being attended to.”
Schindlers Attorneys have created an e-mail address for aggrieved consumers to lodge complaints that will be used in support of the application.
Stan Maphologela, deputy director of customer communications in the city's revenue and customer relations department, confirms receipt of the documents, and says the city is still studying the papers and will comment in due course.
Share
