City of Tshwane Cuts Electricity Supply to SARS Head Office Over R838,000 Unpaid Bill

The City of Tshwane has disconnected the electricity supply to the South African Revenue Service (SARS) head office in Pretoria due to outstanding electricity bills amounting to R838,000. The municipality announced the disconnection on Twitter, stating "When you think we are here for a refund... BOOM, your lights are off. SARS owes us 838 k TshwaneYaTima."

Tshwane Ya Tima is a revenue-collection program the metro reactivated to recoup nearly R6 billion in debt from its customers . The city has previously targeted government buildings and other defaulters, and plans to go after over 1,000 arrear consumers whose debts amount to more than R6 billion.

Why this matters: The City of Tshwane's decision to cut off electricity to the SARS head office highlights the financial struggles faced by municipalities across South Africa. It also highlights the importance of paying utility bills on time, even for government institutions.

The City of Tshwane is struggling with its own financial woes and is unable to pay millions of rands to contractors, suppliers, and workers on time. The municipality has faced threats from Eskom over unpaid bills amounting to R1.9 billion in June 2023. The city's debt to Eskom has grown to R2.9 billion, of which R1.23 billion was paid during March.

Tshwane spokesperson Selby Bokaba confirmed that the electricity supply to the SARS high-rise building was cut off in the morning on Tuesday. The city is finalizing a project management office to oversee debt collection and is committed to paying Eskom the amount owed.

Eskom stated that it did not have the capacity to continue supplying bulk power to the City of Tshwane without receiving the necessary payments, and the city has engaged with Eskom on several occasions regarding this issue. The 'Tshwane Ya Tima' campaign is being institutionalized in the metro to ensure credit control actions and reach cash targets, with all income in the city linked to this initiative.

Key Takeaways

• Tshwane disconnected SARS HQ electricity over R838k unpaid bills.
• Tshwane struggles with R6B debt, targets govt buildings and defaulters.
• Tshwane faces R1.9B Eskom debt, unable to pay contractors/workers.
• Tshwane implementing 'Tshwane Ya Tima' campaign to collect debt.
• Disconnection highlights financial struggles of SA municipalities.