Johannesburg Society for the Blind Faces R31.5 Million Debt Crisis Amid Utility Disputes

The Johannesburg Society for the Blind (JSB), a critical support hub for visually impaired individuals, is grappling with a staggering R31.5 million debt owed to the City of Johannesburg, amidst ongoing disputes over utility charges. This situation has left the institution, which has been without municipal water since December 2020, severely crippled and reliant on limited resources.

Despite the City recently acknowledging billing errors and writing off R8.1 million in phantom charges, including significant reductions in water and power bills, the core issue remains unresolved. Activists and community leaders have expressed outrage over the City’s insistence on collecting the remaining debt, which consists of R27.8 million attributed to water and power alone.

CEO Vangile Nyamathe shared the profound impact of this financial crisis on JSB operations. “This billing problem has set us back six years,” Nyamathe stated, highlighting that the number of residents has dwindled from 84 to just 48 due to the lack of essential services. The institution is now forced to limit educational classes for visually impaired adults, reducing training sessions from 20 students to a mere 10.

The situation has become dire as the JSB is left to depend on a borehole and basic solar inverters, which are insufficient to maintain regular activities. With electricity significantly restricted, the home has struggled to run essential facilities like refrigeration for food storage, leading to reliance on gas for cooking—a costly alternative that strains their already limited finances.

Community activist Michael Lingwood pointed to systemic flaws in the billing practices of Joburg Water, which has continued to bill JSB for water it has not provided. In December 2020, the utility disconnected a water meter but proceeded to charge the institution for an impossible consumption rate. Lingwood criticized the City’s reliance on outdated meter readings and estimated bills instead of accurate assessments. “Joburg Water has taken extensive steps to audit and correct billing anomalies associated with the property,” said Joburg Water spokesperson Puleng Mopeli, pointing to ongoing efforts to verify meter locations and account discrepancies.

Additionally, City Power’s outstanding claim of R9.6 million is built upon inaccurate estimations following a disconnection in November 2023. The utility has continued to issue erroneous bills even after the main grid fuses were pulled, leading to credits for estimated billing discrepancies that still leave a substantial principal debt. City Power spokesperson Isaac Mangena reiterated that credit control policies must be followed, complicating efforts to resolve the crisis.

Despite recommendations from the Office of the City Ombudsman to install a prepaid meter to alleviate the situation, City Power has yet to act, effectively holding the institution hostage over historical debts. Nyamathe emphasized that the JSB is not seeking free power but a means to sustain basic living conditions for its residents.

As the crisis unfolds, the City of Johannesburg’s Group Finance Department continues to demand an additional R3.7 million in rates, even after recent write-offs. This relentless pursuit of debt recovery threatens the very existence of the Johannesburg Society for the Blind, an institution dedicated to empowering visually impaired individuals and helping them achieve independence.

Source: www.dailymaverick.co.za