Tensions are rising over Johannesburg’s alleged malfunctioning billing system, with residents claiming the metro is penalising those who pay their rates on time, while turning a blind eye to defaulters who owe R64bn in unpaid bills.
And, they claim, this has been proved by mounting court cases finding in favour of property owners.
DA shadow MMC for finance Chris Santana said he and other ward councillors receive numerous billing queries daily from frustrated residents.
“Law-abiding citizens face hostile treatment, while chronic defaulters enjoy uninterrupted services. This is not a glitch. It’s a systemic failure of governance, legal compliance and basic service delivery,” he said.
According to Santana, residents complain they are penalised more harshly than those who dodge payment altogether.
“The billing system is broken,” he said. “Residents are dealing with chaos on a daily basis.”
He also slammed the ombudsman as a “toothless” body that cannot enforce rulings or hold the city accountable. “It’s another layer of bureaucracy. Their recommendations are routinely ignored,” he said.
The city rejected these claims as “baseless, out of context and without merit”.
City spokesperson Kgamanyane Maphologela denied allegations that it has been mishandling municipal accounts, conducting illegal service disconnections and failing to respond to customer queries or comply with court rulings.
“The allegations do not reflect the broader picture,” he said. “They fail to account for the scale of our operations and ignore the systems in place to manage over 934,000 registered properties within Joburg’s boundaries.”
He dismissed accusations that the city disconnects services on paid-up accounts. Service disconnections are carried out only after multiple efforts to notify defaulting customers through:
- pre-termination notices;
- billing statements with disconnection warnings;
- email and SMS reminders; and
- in-person visits to properties.
The city has over 16,000 customers which owe it in excess of R10bn and who have defaulted on rates and utility payments for more than six months, said Maphologela..
“These customers are selectively paying for some services while ignoring others, prompting targeted disconnections and recovery efforts.
We’re putting power back in the hands of our customers — accurate billing, better service and full accountability
— City Power
“An open query or legal matter does not absolve a customer from paying for services they are using. They must continue to pay for undisputed charges while any specific issues are under investigation.”
Adjustments to accounts, whether due to billing errors or estimated readings, are made in accordance with municipal bylaws. These are based either on actual consumption data or average use over a specific period.
Amid concerns about fraud and third-party scams offering to “fix” municipal accounts for a fee, the city is urging residents to be vigilant and report suspected fraud through the City Anti-Fraud Hotline: 0860-562-874 or by e-mail: whistle@joburg.org.za.
Refunds, especially those related to the sale of property, are handled through transferring attorneys only — a measure the city says is aimed at preventing abuse and fraud, said Maphologela.
In addition in a sweeping move to overhaul its revenue management and improve financial sustainability, the city has officially launched Project Lokisa, a comprehensive reform initiative aimed at resolving long-standing service queries, curbing growing municipal debt and enhancing customer service.
Unveiled in June, it marks a decisive shift in how the city approaches revenue recovery. The initiative is built on three strategic pillars:
- Fast-tracking backlog resolution: tackling disputes, technical errors and illegal connections
- Aggressive credit control: going after serial defaulters through water and electricity cut-offs
- System upgrades: Fixing meter links and cleansing outdated customer data
In another move to improve service delivery, the city has handed over billing responsibilities to Johannesburg Water and City Power independently from July 1, previously handled by the Revenue Shared Services Centre.
Residents will still receive a single municipal statement, but billing queries for water and sanitation will now be managed by the two utilities.
City Power said in line with this, it has launched a turnaround strategy and integrated 56 finance staff. A city-wide meter audit is under way to link meters to correct accounts.
“We’re putting power back in the hands of our customers — accurate billing, better service and full accountability,” it said.
Joburg Water MD Ntshavheni Mukwevho said this marks a “turning point” in its commitment to better service delivery and responsiveness will result in improved accuracy in water bills, faster resolution of billing queries, more direct communication with Johannesburg Water and enhanced transparency and accountability.
The city respects the courts’ decisions and complies with court orders and where the court issues orders, it endeavours to comply with such orders, said Maphologela.
For instance, where the court rules that the city reconnects services, it does comply. However, after resolution or compliance with the court’s orders, the city reserves the right to collect the much-needed revenue as mandated in the Local Government Municipal Systems Act. Such rights include termination of services where customers fail to pay for services consumed, he added.
The notion that the Office of the Ombudsman is powerless is inaccurate, said ombudsman spokesperson Ipeleng Mtwa.
Between June 2024 and June 2025, the office received 1,242 complaints and successfully resolved 859 — a 71% resolution rate.
Some 90% of these cases involved billing issues, and over 95% of the corrective actions recommended were implemented, she added.
Under the 2023 Ombudsman bylaw, formal escalations can go all the way to the council speaker, and section 19 empowers the office to pursue penalties against anyone obstructing investigations.
“The Ombudsman plays a vital role in promoting accountability and redress supported by statutory processes and enforcement pathways outlined in the bylaws and dismissing it as mere red tape undermines the very processes designed to protect residents and uphold integrity,” she added.
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