After seven years of prolonged power outages, the Kiyasand Association, which represents around 60 businesses in northern Johannesburg, decided enough was enough and threatened to boycott the rates.
Either that or they could take the city of Joburg to court and force it to invest in infrastructure to ensure a reliable power supply.
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Joburg City Power: Bankrupt and in the red, power grid in crisis
Is City Power imposing more load shedding than necessary?
“Last year we had about 100 days without power,” said Bruce Turner, president of the association. “It's not normal load shedding. There were periods of four, five, six days without power due to cable theft, lack of maintenance, and lack of investment in infrastructure.
“The approximately 100 days of power outages were more than double the 45 days in 2022 and 26 days in 2021. It is difficult to operate a business under these conditions,” Turner said.
“There are some large companies here, but most are small businesses of three or four people who can’t afford generators or solar backup systems.
“Some bakeries have had to throw away their produce on days without electricity. Others have had to cancel night shifts due to lack of electricity.”
the last straw
The crucial issue was that the power outage was extended again in February, forcing the association to send in a lawyer.
“Customer members have been instructed that if power is not restored within the next 24 hours, customer members will embark on a tariff boycott,” VMW said in a letter to CityPower and the SA National Energy Regulatory Authority (NERSA).
“We have explained to our clients the implications of this approach, but their members are reaching the limits of their patience as they fight to protect their livelihoods.”
The threat of a interest rate boycott appears to have moved City Power.
Within 24 hours, around R22 million needed for cables and infrastructure to repair the region's electricity supply was discovered, despite earlier claims that the project had no funding.
It is unclear whether the threat of an interest rate boycott resulted in the required R22 million, but it is true that the problem was resolved.
Members of the Kyasand Association took immediate action, providing security for newly arrived equipment at a cost of R100,000 a month to ensure that no one could steal it, and providing security for the seven kilometers needed to strengthen power stability in the region. Some members offered to help build ditches for the cables. Further suggestions were made to cement the trench.
Local businesses work with City Power to ensure the job gets done. This may be the way of the future.
Are they fed up or are they politically motivated?
Councils across Joburg are fed up with declining service provision, but are unsure whether to take their fateful step into the legally murky waters of a fare boycott.
The city of Joburg is clearly upset by these boycott threats, which have intensified in recent weeks as many areas have been without water for almost a week.
Johannesburg Mayor Kabelo Gwamanda said in a press conference last week that interest rate boycotts would lead to the complete collapse of the city, adding that these were politically motivated attempts to undermine black leadership.
He called for constructive engagement rather than trying to undermine city government.
Read/Listen: NPO calls on civil society to unite against Joburg's water crisis
He then pointed to the Westville Ratepayers Association, which lost its toll boycott case against the eThekwini Municipality in KwaZulu-Natal in the Durban High Court last year.
The association sought to prevent eThekwini from cutting off services to people participating in the fare boycott due to poor municipal management.
Residents said there was enough evidence to show the municipality's inaction, including that ratepayers were expected to pay a 15% increase in their water bills, despite 615 million liters of water being lost every day. presented evidence.
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Class action lawyer Richard Spoor commented on X (formerly Twitter): “When a municipality shuts off water supply, it loses all power and influence over its residents. Of course they stop paying fees and taxes. What are municipalities going to do? Shut off their water?
When a municipality cuts off water supply, it loses all power and influence over its residents. Of course they will stop paying fees and taxes. What is the local government going to do? Turn off their water? https://t.co/PxVZZxx8zf
— Richard Spoor (@Richard_Spoor) March 9, 2024
Boycott threats intensify
Tim Tyrrell, a community researcher and activist, said that no matter how dysfunctional the provision of services, local governments inevitably fall back on legal provisions when faced with boycotts.
“The boycott movement is clearly gaining momentum.
“Municipalities typically rely on laws that say they have to pay even if the service is inferior,” Tyrrell said.
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“Most people are frightened by the threat and continue to pay. Some say they have had enough and refuse to pay.
“I think we're at the point where we have to change the law. We can't continue with this situation.”
A strategic approach to boycotts
Residents employ different strategies in different regions of the country.
KwaZulu-Natal's Umdoni Action Group (UAG), which has been boycotting fares for multiple years over poor service delivery, has apparently been unable to engage with Umdoni City in a meaningful way.
Dissatisfied residents typically divert the fees to a suspense account under their control until the municipality complies with their demands.
UAG provides some legal basis for its approach, stating that Article 102(2) of the Local Government Systems Act suspends the credit management and debt collection processes of local governments from the time a dispute is declared until it is resolved. are doing.
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ratepayer revolt
South Africans are revolting against incompetent local government.
“To date, there has been no attempt by UM.” [Umdoni Municipality] solution,” UAG said.
Additionally, an individual's credit rating can only be harmed by a court ruling, which can only be done if you ignore a subpoena from a UM debt collection attorney, the matter proceeds to court, and your case is lost. You can get it,” he added. .
“In our experience since May 2020, UM has not proceeded beyond issuing a subpoena.”
victory in court
In 2020, residents of Kgetlengrivier in the north-west were granted an order forcing the local government to hand over management of the area's broken water and sewage systems to the council.
The order was later overturned and is now being heard by the Supreme Court of Appeal, with residents claiming that the local government had once again allowed infrastructure and services to wither away, leaving residents exactly where they started in 2020.
Read: North West residents go to court to jail city manager
In 2022, residents of the Govan Mbeki Municipality in Mpumalanga were granted an order in the Mpumalanga High Court requiring them to regularly report to the court on their progress in resolving the R1.18 billion Eskom arrears. A 10-hour power outage occurred. Up to 14 hours a day. Another victory for the residents.
Read: Court victory for Mpumalanga residents facing 14-hour power outage
The Eastern Cape's Makanda High Court ordered the dissolution of local government councils in 2020 after residents complained that services were almost completely dysfunctional.
It didn't seem to have had a happy ending, as just this week a group called the Makana Civil Front (Makana is located in the municipality of Makana) announced that it wanted a forensic investigation of “more than R600 million unaccounted for”. and other shoddy contracts and incompetence related to water and sanitation in Makana. ”
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“We have given up on asking nicely. We are running a massive signature campaign to show we are serious and to ensure our constitutional right to clean and safe water. We will continue our strong action,” said Makana Civil Front leader Lungile Mushbe.
Private sector fills municipal void
When local governments go bankrupt, the private sector fills the gap. Across the country, private operators are repairing roads, collecting trash, and repairing water and electrical infrastructure without permission.
The situation has been going on for years in the town of Betal, another abused child in Mpumalanga's Govan Mbeki municipality. In a town where local governance has become virtually irrelevant, residents rely on their own wits to survive.
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“People now have to pay private companies for services like garbage collection and repairing broken power infrastructure,” Tyrrell said. “Courts must take a more lenient view of boycotters in the future, as municipalities are not forever protected from violating constitutional service obligations and still require residents to pay.” I think that.”
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