While residents have been devastated by moerse water bills, the City of Cape Town has raked in close to R1 billion more than what it budgeted for.
Service charges for water revenue amounts to R938 million over recovery, while sanitation revenue is R188m over its planned budget.
The over recovery amount, which is more than R1bn, is included in the quarterly financial report of the City for 2017/18, reports the Cape Argus.
According to a quarterly budget report by Mayor Patricia de Lille, the over recovery is due to the current “billed revenue” that is reflecting an over recovery against the budget provision.
“Punitive tariffs to prevent the City from running out of water were introduced during the financial year. As some consumers are still using water above restriction levels, the punitive tariffs have
escalated the ‘billed revenue’,” the report says.
“It must, however, be emphasised that this amount is not cash-backed. High consumption by non-paying customers will mean that the over recovery on ‘billed
revenue’ will be offset by the over expenditure.”
There was also a R357m over recovery on traffic fines, penalties and forfeits, the report said.
Faiez Jacobs, ANC provincial secretary, said the ANC legal team was still busy collecting affidavits from aggrieved ratepayers before the party takes the City to court over massive tariff increases.
“The ANC wants pensioners and poor households who have been saddled with high bills to be able to litigate against unfair tariff bills and faulty water meter management devices in the High Court,” he said.