Joburg's Project Lokisa: A bold move to recover R61 billion in municipal debt
Image: Cara Viereckl / Independent Newspapers
The City of Johannesburg is intensifying its efforts to reduce its nearly R61 billion consumer debt by targeting the municipality's worst defaulters.
Project Lokisa will be an aggressive debt recovery focusing on the city's biggest defaulters, particularly large electricity and water consumers with properties valued above R100 million, high-valued residential properties valued at more than R5m, businesses, government departments, and state-owned entities.
According to the National Treasury's latest available figures, as of the end of December last year, the country's eight metropolitan municipalities were owed more than R206bn, with households responsible for about R154bn, businesses almost R43bn while the debt owed by organs of state stood at R7.73bn.
In total, municipal consumer debt across the country was just over R405bn, with households about 72% (or R291.1bn) and the government 5.6% (R22.7bn).
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
This week, the City of Joburg announced the launch of Project Lokisa, which means to fix or sort out, and the municipality described it as a multifaceted approach aiming to claw back the money owed for municipal services by the worst defaulters.
The large scale and bold reform also aims to improve revenue recovery and ensure the municipality's financial sustainability.
Acting group head of revenue and shared Malope Ramagaga said Project Lokisa will encompass the implementation of large-scale disconnection operations across the city, targeting mostly worst defaulters, with an intense focus on illegal connections and the constant monitoring of the impact of disconnection on customers.
Ramagaga also indicated that under Project Lokisa, changes will be introduced to the process of issuing clearance certificates when owners sell their properties.
He said this was to ensure that the municipality does not lose money owed for municipal services by the seller when they finally put their property on sale.
'A clearance certificate will be provided to the transferring attorney and the customer with a notice of the total amount owing above 90 days. Attorneys will be given notice to sign an acknowledgment of debt, which will authorise direct payment to the city from the sale proceeds,' Ramagaga explained.
The municipality has urged all property owners and businesses to settle their outstanding accounts or alternatively make payment arrangements to avoid disconnections and legal action.
loyiso.sidimba@inl.co.za
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
2 hours ago
- The Citizen
‘I'm not getting any younger,' says judge as VBS Bank case delayed again
The matter will return to court in 2026. The long-running Venda Building Society (VBS) Mutual Bank fraud and corruption case has once again been delayed, with proceedings now postponed until next year. On Monday, 13 suspects linked to the looting of the VBS appeared before the Gauteng High Court in Pretoria. Among them are former bank executives and several politicians accused of defrauding the collapsed bank of more than R2 billion. ALSO READ: Mayor claims she was exonerated of VBS graft allegations The trial has faced repeated delays, partly due to interlocutory applications brought by some of the accused. Former ANC Youth League (ANCYL) leader Kabelo Matsepe and former Limpopo ANC treasurer Danny Msiza last year sought to have their trials separated or, alternatively, to secure a temporary stay of prosecution, citing delays in the matter. In August 2024, Judge Peter Mabuse granted their applications, but the state appealed the ruling at the Supreme Court of Appeal (SCA). VBS Bank case postponed On Monday, the case could not proceed as more of the accused signalled their intention to also separate their trials, arguing that the drawn-out process is prejudicial. Prosecutor Hein van der Merwe told the court that the state is still awaiting the SCA's response to its petition. He asked for a postponement, while the defence objected, saying it was unfair for some of the accused – many of whom live in Limpopo – to travel to Gauteng only for proceedings to be adjourned. Mabuse nonetheless granted the postponement, though no trial date has yet been fixed. 'In that case, I order that this matter be postponed to 9 February 2026,' the judge ruled. The bail conditions of the accused were extended. Mabuse added light-heartedly: 'Please in the meantime bear in mind that I'm not getting any younger.' State prosecutor Hein van der Merwe at the Pretoria High Court on 14 August 2024. Picture: Gallo Images / Deaan Vivier So far, at least 35 people have been arrested in connection with the scandal, and six convictions have been secured. Among them was last year's sentencing of former VBS chairperson Tshifhiwa Matodzi, who received 15 years in prison for stealing more than R1.9 billion. In addition, liquidators have managed to recover R730 million from the bank's collapse in 2018. The recovered funds will be paid to verified creditors, including municipalities, trade creditors, and retail depositors with balances exceeding R100 000. NOW READ: Rebuild VBS, urges ANC treasurer-general
IOL News
5 hours ago
- IOL News
South African farmers see strong US exports performance in second quarter
Minister John Steenhuisen says the results of the second quarter of 2025 also highlight how urgent it is to resolve the ongoing tariff talks with the US. Image: Independent Newspapers The South African agricultural sector has demonstrated remarkable growth and resilience in the face of significant global trade headwinds, Agriculture Minister John Steenhuisen notes as recent data show South Africa's exports have not only remained competitive, but have increased in the second quarter of 2025 to US$161 million, up by 26% from the same period in 2024. 'However, it is important to examine this performance with a forward-looking perspective. The recent imposition of a 30% tariff on our exports by the United States (US) has brought to light the urgent need to diversify our export markets –– and enhance our competitiveness to mitigate the economic impact of losing preferential trade access.' Minister Steenhuisen says the results of the second quarter of 2025 also highlight how urgent it is to resolve the ongoing tariff talks with the US. 'Our capacity to gain steady, long-term access to this important market continues to be a top priority,' he adds. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The figures speak for themselves. In the first quarter of 2025, South African agricultural exports to the US were US$118 million, up by 19% year-on-year. 'This growth is not merely a statistical anomaly, but a reflection of a bountiful harvest, a surge in high-quality produce, and the efficient operation of our ports. The products Department of Agriculture ''Leading this charge include a variety of fruits such as citrus, grapes, apples and pears, as well as nuts and wine. ''As we continue to engage in diplomatic negotiations and work towards a more favourable trade agreement, the focus remains on ensuring that our farmers and exporters can continue to thrive in the global marketplace, securing the future of our agricultural sector,' Minister Steenhuisen emphasised. Department of Agriculture
IOL News
6 hours ago
- IOL News
NUMSA calls for aggressive industrial strategy to combat deindustrialisation
NUMSA urges government action to boost localisation and curb imports Image: Phando Jikelo The National Union of Metalworkers of South Africa (NUMSA) urged the government to implement an aggressive industrial blueprint to reposition the country's manufacturing base. In a press briefing by General Secretary Irvin Jim on Monday in Johannesburg, the union called for higher tariffs on automotive, tyre, steel, and engineering sectors, stringent procurement rules to boost localisation, and decisive steps to curb imports and unfair practices. NUMSA's stance comes as fears of deindustrialisation and mass retrenchments loom over a sector that has struggled with competition from cheaper imports and policy gaps. The union proposed immediate protective measures and a longer-term strategy to strengthen local content and investment. 'Given that National Treasury has already passed the Public Procurement Act to support manufacturing and industrialisation, it is essential that National Treasury move swiftly to introduce public regulations to implement this Act,' Jim said, framing procurement reform as a crucial lever for localisation and designation. NUMSA's plan reflects urgent fears of deindustrialisation and retrenchments, pairing immediate protective measures with a longer-term push for local content and investment. Key elements of NUMSA's position include Tariffs and Localisation standards. The union reiterated calls for tariffs across core sectors and 'clear standards for homologation.' It highlighted the tyre-dumping crisis and urged a ban on tyre and carbon black imports, while pressing for standards that ensure domestic job creation and value added. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Jim argued that the state must use procurement to drive localisation, urging foreign brands seeking market access to establish assembly plants in South Africa and employ local workers. He cited data showing 65% of local-market vehicles are imported with zero local content to underscore the need for policy incentives that reward local manufacturing and living-wage jobs. NUMSA urged SARS to crack down on transfer pricing and profit shifting, contending that such practices drain the fiscus and undermine incentives meant for job creation and local industry. In steel, NUMSA called for stronger protection of primary production, including measures against cheap imports. The union pointed to July 2024–January 2025 data showing 1.4 million tons of steel imported, with some importers securing refunds that harmed local producers. Retrenchments were highlighted as a direct consequence of policy gaps. The briefing linked current challenges to a neoliberal agenda and called for urgent energy reliability as part of a broader industrial strategy. "Eskom's ongoing crisis and load-shedding are described as persistent threats to manufacturing competitiveness. The union framed government intervention as essential to 'protect what remains of our manufacturing base,' including efforts to support distressed plants such as Goodyear's Kariega facility and demand accountability across government and industry levels. NUMSA also pressed for accelerating localisation to 60% in production while continuing to pursue export opportunities. Jim warned that deindustrialisation is underway and urged the government to couple incentives with tighter local content and designation conditions. 'The risk of deindustrialisation is no longer a distant threat; it is a reality we are already facing,' Jim said, calling for a comprehensive industrial strategy that prioritises job creation, economic justice, and robust public-sector leadership of critical sectors. IOL Politics
