Buffalo City's Chief Financial Officer Brian Shepherd has issued an ultimatum to municipal account holders in arrears: pay now if you don't want to have a black Christmas.

The harsh campaign under the sound bite, "Pay now - it is the bright thing to do", is being launched this week.

The city is owed R370-million and the ultimatum is part of a tough new December clampdown to collect money while swooping on domestic, business and government defaulters by cutting off services.

"We have exhausted all humane and caring means to carry out our legal obligations to collect outstanding money. We are under pressure from National Government to prove that we do not merely depend on grant funding but can demonstrate clear-cut strategies to collect outstanding money and enhance revenue management," Mr Shepherd said.

"In the light of this, I have now been instructed by the City Manager that if cut offs are the only means to ensure that we maintain a livable, functioning and financially sustainable city, so be it.

"We are coming for all defaulters," said Mr Shepherd, who is making sure all systems and processes are in place to enable hassle-free payment and instant answers to queries.

The campaign threatens to name and shame defaulters publicly and will review the costly system of handing over accounts to lawyers for collection. Selling defaulters' properties to recover outstanding money by shortening the route is also under review as a last resort.

"These are harsh measures that we don't want to use but we have no alternative if the city continues to bleed financially. If consumers continue to hold the success of the city to ransom by not paying, the law will have to take its course," Mr Shepherd said. "And the law is clear: political and administrative leaders are legally liable if they fail to collect municipal money. No politician or official can be expected to go to jail for consumers' debts."

Although Buffalo City would support residents on the financial breadline, Executive Mayor Sindisile Maclean yesterday said the campaign to clamp down on defaulters who did not pay for municipal services had his full backing. The mayor said it was sad "it had come down to the municipality taking harsh measures" but he could not condone non-payment by people who put their municipal bills low on their list of priorities. "These people have the money to pay their bills but choose to take us for granted. We need to take action and if it means cutting off electricity for December, so be it."

Buffalo City Chief Financial Officer, Brian Shepherd, earlier this week noted that the defaulter profile showed it was not the poor disrupting the municipality's cash flow: "Business - commercial and industrial - owed us R52 428 871 as of 19 November 2003."

Said Maclean: "I don't believe businesses should owe the municipality some R52-million. I also don't believe that people who can afford to pay should not face up to their responsibility. We are in desperate need of money to run the city."

The clampdown was not to be confused with an attack on "poor, unfortunate" people, the mayor added.

Many indigent families forgot they had to register for service grants every year, the mayor said, urging them to take registering seriously. "These families should register and receive the R120 monthly support we give to indigent people through funds we receive through the Equitable Share programme."

In addition, for indigent residents, the programme of supplying such families with 50kw/h of free electricity and 6kl/month of free water would continue.

The municipality would be running adverts in the local newspaper and posting flyers to warn customers of the "dark" days ahead if people did not pay up, the mayor said. "Pay now people, it really is the bright thing to do," he added.

South African Cities Network: www.sacities.net