/ 15 August 1997

East Rand municipality bankrupt

FRIDAY, 3.30PM

THE East Rand municipality of Sporings in Gauteng said on Friday that it is in dire financial straits and might not be able to meet its salary obligations at the end of the month.

Springs municipality executive committee chairman Tatis Phasha said the council had already defaulted on R12-million owed to electricity utility Eskom which fell due on August 12. Only R6-million was paid. The municipality’s serious financial position is largely the result of widespread defaulting on rates and services payments.

“Our reserves are finished,” Phasha said. He added that the council is casting about for help, including an approach to the Eastern regional services council.

Phasha said electricity to more than 100 houses is being cut daily in an effort to get people to pay their electricity bills. The switch-off has resulted in R191 000 in arrears being collected in a single day, a record for the municipality, said Phasha. He said 1 200 consumers had made arrangements with the council to pay off their arrears.

Springs mayor Vuyisele Rarane said 1 043 houses have been deprived of electricity since August 5, and R672 000 in arrears has been collected since then.

Meanwhile, in Eersterus east of Pretoria, a group of about 500 protesting residents pelted the local police station with bottles and rocks in protest at electricity cut-offs. Shots were also apparently fired at police from the crowd, promting police to retaliate with rubber bullets, tear gas and shock grenades.

The protesters earlier blocked the two main entrances into Eersterust by placing burning tyres in the streets. Minibus taxis were pulled off, cars damaged and commuters assaulted and prevented from going to work.

Two protesters were arrested. The only reported injury was a policeman hit on the head by a rock.

The Greater Johannesburg Metropolitan Council said on Friday it will begin cutting off gas and water supplies, in addition to electricity cut-offs, to defaulters from Monday.

Council spokesman Keith Peacock said commercial and industrial defaulters will be the main targets.