By Anish Abraham
Joburg city has given 84 000 indigent residents a reprieve, with more than R1-billion in arrears written off already by the department of revenue as part of the municipal services subsidy scheme.
This is according to Councillor Parks Tau, the member of the mayoral committee for finance, strategy and economic development.
Registration of people who would benefit from the scheme began in May, and the City estimates about 100 000 residents will qualify for the subsidy.
The department expects it will have to write off arrears totalling R1,5-billion, mainly arising from water and electricity charges.
"Of those who have registered, 57 percent are pensioners, 22 percent are unemployed and 12 percent have a low income," Tau said.
According to Mandy Jean Woods, the director of marketing and communications at the City's department of revenue, most of the applicants were from southern areas such as Soweto, Ennerdale, Eldorado Park and Orange Farm.
There are between 200 and 300 people registering for the scheme daily, a drop from a high of 1 100 people a day.
"There is no way of knowing exactly how many people will register for the scheme since there is no deadline, but the rate of registrations per day is dropping," Woods added.
Tau warned, however, that people found to be abusing the scheme would face legal charges. The registration verification process had identified people who had registered, but who did not qualify.
"We view this in the most serious light. In line with the procedure we have set out, these applications will be immediately reversed and arrears reinstated," he said.
The City will also apply credit control action, such as cutting or restricting services, and institute civil action for the recovery of the arrears.
Woods said the department also conducted random sampling; officials were sent to the houses to verify the information that was given at the registration.
Should council staff found to be involved in any fraudulent activity, they will face an internal disciplinary procedure and their cases will be referred to the commercial crime unit of the South African Police Service for criminal charges.
"These schemes are aimed to assist the poorest of residents. Those people who are being opportunistic are robbing the poor," Woods concluded.
Verification of the information submitted by people who have registered is continuing.
Residents can register for the subsidy at their nearest paypoint and should take the following documents, or certified copies of the documents:
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