Attention: Mr Humphrey Memezi

MEC: Local Government and Housing

Gauteng Provincial Legislature
19 January 2011

Dear Sir,

Re: Billing Crisis in the City of Johannesburg

As the billing crisis in the City of Johannesburg has steadily deepened in recent months, the Joburg
Advocacy Group, an independent advocacy group working for best-practice governance in the city,
has been trying to assist residents with information on how to deal the apparently unresolvable
problems they are experiencing with their municipal accounts.

In November of last year we even released an information leaflet (copy attached) giving details of
every possible course of action.

Regretfully, large numbers of residents have been unable to have their billing problems resolved
through the normal channels available to them, including Joburg Connect, their ward councillors and
the Public Protector.

We also note with alarm that residents who have legitimate complaints which they have been
unable to have resolved through these channels are being threatened with electricity cuts (or,
indeed, have had their power cut off) until such time as their (disputed) bills are paid in full. Others
report having to sign acknowledgements of debt for amounts that are in dispute in order to obtain
clearance certificates after the sale of a property. Landlords also report electricity supply cuts at
large blocks of flats where the bills are in dispute (this especially over the festive season), and advise
that they were only able to have power restored when the (disputed) accounts were settled in full.
Still other landlords report cuts at buildings where accounts are not in dispute, as municipal workers
selected the incorrect building during the process.

Given that may residents report numerous payments not reflecting on their bills, incorrect meter
readings or hugely inflated interim readings, and given that their legitimate attempts to have these
problems addressed have been repeatedly unsuccessful, this can only be construed as a campaign of
organised intimidation.

Under the circumstances, we call on you to institute an official investigation into the billing crisis in
the city, in terms of Sections 105 and 106 of the Municipal Systems Act (Act 32 of 2000, as amended
in Act 44 of 2003), copied in full below.

As the current situation is not only untenable, but is in direct contravention of Section 33 of the
Constitution of the Republic of South Africa (also copied below), we hope we can depend on you to
treat this matter with the urgency it deserves, and to initiate an official investigation without any
delay.

Thank you in anticipation for your consideration.

Sincerely,
Lee Cahill

1
NOTE: Please be advised that this letter is being copied to selected ward councillors, community
representatives and members of the media.

Lee Cahill (Ms)

Founding Member
Joburg Advocacy Group
Working for best practice governance in the City of Johannesburg

P.O. Box 28557

Kensington
2101
South Africa
+27 (0)11 614 0690 (T)
+27 (0)88 011 614 0690 (Fax2Mail)
jag-sa@telkomsa.net / lee.cahill@telkomsa.net
http://jag-sa.blogspot.com

INCOMING AND OUTGOING MAIL SCANNED BY AVG ANTI VIRUS AND ANTI SPAM
 
PRIVATE, PRIVILEGED AND CONFIDENTIAL. The information contained in this e-mail and in any
attachments is confidential and intended for the designated recipient(s) only. If you are not a
designated recipient, you may not forward, use, copy, publish, transmit or rely on the information in
this mail in any way. If you have received the mail in error, please notify the sender and then delete
it permanently. Thank you.

EXTRACT FROM THE MUNICIPAL SYSTEMS ACT

GOVERNMENT GAZETTE
20 NOVEMBER 2000
Act No. 32, 2000
LOCAL GOVERNMENT
MUNICIPAL SYSTEMS ACT, 2000

CHAPTER 10
PROVINCIAL AND NATIONAL MONITORING AND STANDARD SETTING

Part 1: Provincial monitoring

Provincial monitoring of municipalities

105. (1) The MEC for local government in a province must establish mechanisms,
processes and procedures in terms of section 155 (6) of the Constitution to -
(a) monitor municipalities in the province in managing their own affairs,
exercising their powers and performing their functions;
(b) monitor the development of local government capacity in the province; and
(c) assess the support needed by municipalities to strengthen their capacity to
manage their own affairs, exercise their powers and. perform their functions.

2
(2) The MEC for local government in a province may by notice in the Provincial
Gazette require municipalities of any category or type specified in the notice or of any
other kind described in the notice, to submit to a specified provincial organ of state such
information as may be required in the notice, either at regular intervals or within a period
as may be specified.

(3) When exercising their powers in terms of subsection (1) MECS for local
Government -
a) must rely as far as is possible on annual reports in terms of section 46 and
reformation submitted by municipalities in terms of subsection (2); and
(b) may make reasonable requests to municipalities for additional information
after taking into account––
(i) the administrative burden on municipalities to furnish the information;
(ii) the cost involved; and
(iii) existing performance monitoring mechanisms, systems and processes in
the municipality.

Non-performance and maladministration

106. (i) If an MEC has reason to believe that a municipality in the province cannot or
does not fulfil a statutory obligation binding on that municipality or that maladministration,
fraud, corruption or any other serious malpractice has occurred or is occurring in
a municipality in the province, the MEC must —
(a) by written notice to the municipality, request the municipal council or
municipal manager to provide the MEC with information required in the
notice; or
(b) if the MEC considers it necessary, designate a person or persons to investigate
the matter.

(2) In the absence of applicable provincial legislation, the provisions of sections 2,3,
4, 5 and 6 of the Commissions Act, 1947 (Act No. 8 of 1947), and the regulations made
in terms of that Act apply, with the necessary changes as the context may require, to an
investigation in terms of subsection (1)(b).

(3) An MEC issuing a notice in terms of subsection ( l)(a) or designating a person to 10

conduct an investigation in terms of subsection ( l)(b), must submit a written statement
to the National Council of Provinces motivating the action.

EXTRACT FROM THE CONSTITUTION OF THE REPUBLIC OF SOUTH AFRICA, 1996

GCIS

33. Just administrative action

1. Everyone has the right to administrative action that is lawful, reasonable and procedurally
fair.
2. Everyone whose rights have been adversely affected by administrative action has the right
to be given written reasons.
3. National legislation must be enacted to give effect to these rights, and must

3
 a. provide for the review of administrative action by a court or, where appropriate, an
independent and impartial tribunal;
b. impose a duty on the state to give effect to the rights in subsections (1) and (2); and
c. promote an efficient administration.

End.