The Western Cape department of local government had its electricity and water reconnected on Friday after it paid R242 000 towards its arrears bill.
The department’s city centre building was disconnected on Thursday over what the City of Cape Town said was an outstanding amount of over R724 000, the bulk of which was made up of rates and service charges.
Mayoral committee member for finance Ian Neilson said the city received the R242 000 from the department on Friday, along with R27 000 in interest.
Although this did not settle the full amount, the water and electricity would be reconnected on the understanding that the department would make further payments towards its arrears.
”Province has agreed to ensure that we will receive R23-million in outstanding payments before the end of the month,” he said. ”A task team consisting of officials from province and the city will also be meeting next week Wednesday to discuss the outstanding accounts.”
Mayoral spokesperson Robert Macdonald confirmed that the services had been reconnected by late afternoon.
The city says the province owes it a total of R79-million, over half of which has been outstanding for the past year.
The city has threatened further cut-offs to a range of consumers, naming the Airport Company South Africa (Acsa) as its number one defaulter, with a bill of R50,5-million.
However, Acsa said on Friday it was incorrect to suggest that the airport had failed to pay rates and taxes.
ACSA spokesperson Deidre Hendricks said in a statement that the amount had formed part of ”formal discussions” since 2003 when the airport received a ”sudden 900%” increase in rates. This followed a revaluation of the airport property by the city.
She said an agreement had been reached to pay an agreed amount in 2004 and in 2005, with outstanding balances to be settled once a final evaluation of the property was completed.
”As a good corporate citizen, Acsa takes its obligations very seriously and therefore it is incorrect to suggest that Acsa has failed to pay its rates and taxes to the City of Cape Town,” Hendricks said. — Sapa