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Cradock and Middelburg — water shutdowns over unpaid bills mark ‘10-year anniversary of a huge balls-up’

Cradock and Middelburg — water shutdowns over unpaid bills mark ‘10-year anniversary of a huge balls-up’
A team from the Chris Hani District Municipality engaging with the public on the new smart meters that are being introduced in Cradock. (Photo: Supplied)
As the Chris Hani District Municipality starts disconnecting water services in the face of unpaid bills, businesses in Cradock and Middelburg in the Eastern Cape say the municipality’s accounting processes are chaotic and that the water cutoffs are ‘aggressive’ and ‘extortive’.

“What we should have done is have a big braai to mark 10 years of a huge balls-up,” says Cradock ward councillor Rika Featherstonehaugh. 

Featherstonehaugh’s office was inundated with calls from angry residents and business owners whose water was cut by the Chris Hani District Municipality in a blitz that saw key tourism and visitor assets in the town cut off. This comes as about 2,000 taxis a day are expected to pass through the town and with all accommodation facilities fully booked for the holidays.

The Chris Hani District Municipality managed to get R3.5-million in payment for water bills after disconnecting the water to 35 businesses, government departments and offices of the local municipality in Cradock and Middelburg, starting on Monday, 2 December.

The municipality was recently downgraded by the international credit agency Moody’s mostly because of its appalling collection rate, which is 5.89% for Cradock and Middelburg and even lower, below 1%, for other towns in the district. 

Chris Hani District Municipality spokesperson Buli Ganyaza said the disconnection programme for water services was launched in Cradock and Middelburg  “following numerous engagements with non-paying businesses and government account holders within the district”. 

She said on Friday that the municipality had disconnected 35 businesses. These businesses will now use smart meters for future billing, but the outstanding billing is in chaos, many business owners said.

Wilhelm Smit, who heads the Cradock Business Chamber, said not all business owners received notices of the disconnections, although the municipality insisted notices were sent out. 

“Some never received notices. They are being aggressive. We have asked for a while for them [the municipality] to sit with us and work with them. We said from the start we want to pay for our water and we are in favour of the smart meters. It is excellent that they are installing these. But they have not handled this well. People are very angry and unhappy about this. The [timing] is terrible. It should have been done a while ago. They took the water [services] over 10 years ago,” he said.”

Business owners were required to drive 140km to Komani to pay for water before the service was reconnected. 

But some business owners were happy to receive a smart meter. Local business owner Frikkie Coetzee said it will solve all his current billing problems. “I had the first one installed. They were going to do a second one but they couldn’t find the pipes.”

Executive mayor Lusanda Sizani said the disconnection blitz in the district started on 29 November. “Our consumers owe us R541-million in Inxuba Yethemba municipality [Cradock and Middelburg]. We want to ask that people pay us. We can’t do service delivery if they don’t pay. We will embark on this programme until June 2025.”

Consumers across the district municipality owe a total of R1.6-billion. Chris Hani District Municipality is the water services authority for six municipalities in the district and was controversially appointed to manage water services in 2014. 

The district municipality’s tenure, now 10 years old, has never been accepted by residents, who went as far as approaching Parliament in 2015 to ask the government to reverse the appointment of the district municipality as the water services agent.

Read more : Ground Level Report: Chris Hani Municipality’s rivers of sewage flow freely after years of incompetence and neglect

At the time, Parliament heard that neither the Department of Cooperative Governance and Traditional Affairs nor the Department of Water and Sanitation was involved in the decision to delegate the water services function to the district municipality.

Since then the residents and businesses have been plagued by problematic account billing, including accounts for properties in the names of previous owners, many of whom were deceased. Apart from the billing issues, the area is also frequently subject to water outages and shocking sewage spills linked to failures by the municipality.

Featherstonehaugh, the Democratic Alliance councillor for Ward 5, where many of the disconnections were carried out, said the town should have held a big braai to mark 10 years of billing chaos since Chris Hani District Municipality took over the provision of water services. She said many businesses where water use used to be low were hit by large accounts, some accounts were in the names of deceased former owners and some were older than three years. She said frequent water outages were causing air pockets in the plumbing, which is pushing up water meter readings.

The disconnection blitz started in Cradock and Middelburg on Monday and continued through the week.

Livid consumers and onerous application processes


Officials from the Chris Hani District Municipality discuss disconnecting water services for defaulting ratepayers. (Photo: Supplied)



Chris Hani municipality members at a business site A team from the Chris Hani District Municipality engaging with the public on the new smart meters that are being introduced in Cradock. (Photo: Supplied)



Consumers who have been battling to get accurate water accounts were livid. Local estate agent Charles Garth said many businesses’ water meters are underground and they have not been able to get accurate readings on their water accounts. Others received vastly inflated water bills but were told to pay up before they could file a dispute.  

The municipality also introduced an onerous application process for ratepayers to pay their accounts, which included sending three months of bank statements, personal documents and salary slips. There is also a requirement for a rates account from a municipality that was dissolved in 2016.

David Kerr, the chair of the ratepayers association in Cradock, said they have appointed an attorney to collect all complaints. 

Video footage obtained by Daily Maverick shows how the municipality, in some instances, used heavy equipment to break up the road to access water meters for disconnection. The underground meters had been covered with tar for streets and parking spots.

https://www.youtube.com/watch?v=a0Uv77cvxjM

Sizani and members of the mayoral committee were taking part in the disconnections. Ganyaza added that the municipality was targeting businesses and sector departments listed on the defaulters register.  

“As at 31 October 2024, defaulters in Inxuba Yethemba Local Municipality owe more than R541-million for water and sanitation services,” Ganyaza said

A large portion of the services debt in the municipality belongs to the government, which owes R142-million in outstanding water accounts. Ganyaza said schools, hospitals and the local prison were cut off but restored after the government paid up.

She said all affected were advised of the planned disconnections. 

“Final pre-termination notices were issued in August encouraging customers to pay off their debts with only a few who responded to the call for payment arrangements. Over 543 properties in the area have been put on the priority list for smart meter installations. The efforts are part of the municipality’s strategy to enhance its ability to meet its service delivery and development obligations.” 

Chaotic, enormous billing 


Garth said the municipality’s billing system remains chaotic, and residents have been hit with enormous bills that do not take into account the fact that debt is prescribed after three years. Some residents were also given an old bank account number, dating from 2016, but were then told if they use a “special reference” it will still reflect on their bills.

“There are people who will never be able to pay what they ask,” he said. 

He said the state of the water system in Cradock is also of concern as many residents have leaky water meters, the town is riddled with leaky pipes and residents are not given accurate readings with their accounts. 

“My own meter doesn’t work,” he said.

Garth said the municipality’s own water trucks were sold at an execution auction last year, and the businessman who bought them now uses them to provide water to suffering communities for free during the constant water outages.

‘I don’t think anybody in town has a problem paying their accounts but since 10 years ago when the Chris Hani District Municipality took over the water billing system it has been in complete chaos,” he said. “Even when people pay it is not reflected on the system. So we ask people not to pay cash, but only to pay with EFTs [so] that they have proof of payment.”

Other business owners described the disconnection blitz as “an all-out attack”.

Residents and business owners swamped the local stores to panic buy all the water they could find following the start of the disconnection programme.

The Auditor-General in its latest auditing report for the municipality, for the financial year ending June 2023, highlighted that the municipality’s goals to improve the quality of drinking water in its towns are ill-defined and not measurable. 

The report notes that there was no adequate management, accounting and information system in place for accounts and debtors, and that revenue due to the municipality is not calculated on a monthly basis, adding that accounts are not sent out on a monthly basis and that standard rates are not applied when sending out accounts. The report, however, does point out that a “data-cleaning” exercise was performed in March 2023 to improve this situation. DM