17 October 2005 Press Release R1bn WRITTEN OFF IN ARREARS FOR MUNICIPAL SERVICES SUBSIDY SCHEME TODATE More than R1bn in arrears has been written off by the City of Johannesburg's Department of Revenue against account holders who qualify for the municipal services subsidy scheme, according to member of the Mayoral Committee responsible for Finance, Strategy and Economic Development Cllr Parks Tau. The arrear costs are mainly made up of water and electricity charges. A special registration drive for the scheme was launched on 4 May this year and at the time the City indicated that it anticipated at least 100 000 account holders would qualify for the scheme resulting in an estimated write-off of arrears totaling R1,5 billion. So far, more than 84 000 account holders have registered. "The daily average registration has dropped off from the high of 1100 per day to around 524 per day presently. Of those that have registered, 57% are pensioners, 22% are unemployed and 12% have a low income. "But it is of concern to us that people are taking advantage of this scheme which is intended to assist the most vulnerable of our citizens. Our registration verification process has identified people who have registered for the scheme but who do not qualify," Tau says. "We view this in the most serious light. In line with the procedure we have set out, these applications will be immediately reversed and the arrears reinstated. Credit control action will be applied including cutting or restricting services as per procedure and civil action will be instituted for the recovery of the arrears, he says. Where Council staff are found to be involved, they will be subject to internal disciplinary procedures, and we will be referring cases to the Commercial Crime Unit of the SAPS for criminal charges. Tau says the verification of the information given by people who have already registered is continuing. ENDS Issued by: Mandy Jean Woods: Director: Marketing and Communications Department of Revenue, City of Johannesburg Phone: 407 7356 Fax: 403 7738 082 553 4211 (Please send sms if urgent) Email: mandyw@joburg.org.za