August 29, 2005
By Lucky Sindane
THE City is to take tough action against nine individuals who were caught trying to cheat the municipal services subsidy scheme.
The drive to register Joburg's poor for the subsidy was launched in Soweto by Executive Mayor Councillor Amos Masondo on 4 May.
Each month, the City provides six kilolitres of water free to all households and 50 kilowatts of electricity to those supplied by City Power. In addition, it does not charge assessment rates on properties valued at less than R20 001.
The subsidy covers the remaining charges for refuse removal and sanitation. Those who qualify have their arrears written off.
"It is unfortunate that there are people who have found opportunity to exploit a scheme that is intended to assist the poorest of the poor in the city," said Roland Hunter, the acting chief executive officer in the City's revenue department.
According to the revenue department spokesperson, Mandy Jean Woods, the City recently had begun verifying the details and circumstances of those people who had registered for the scheme. During this process nine cases were identified where individuals who had registered were found to not have met the criteria for qualification.
"All of the cases are external to Council. We have reversed the write-offs associated with these accounts and instated immediate credit control action," Woods said.
"We have also initiated criminal proceedings against them and are working closely with the commercial crime unit of the South African Police Service in this regard."
During the launch of the municipal services subsidy scheme, Masondo warned potential fraudsters, saying, "Let me caution you that people who are caught cheating this system will be deregistered from the Special Cases Policy programme and they will not be allowed to reapply for the subsidy for the next five years."
Hunter said the department was continuing its verification programme, checking the details of people who had already registered. "If it is found that there are other people who have misrepresented themselves, we will also take immediate action against them."
Fraudsters can be reported by calling the City's fraud hotline on 0800 002 587.
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