Witzenberg Municipality consumer accounts

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0 height="100%"><tr> <td valign="top" width=30 BGCOLOR="#0066CC" TEXT="#080000"> <bR> </td> <td valign="top" width="100%" style=" border-left: 1px solid #3366CC;" BGCOLOR="#000066" TEXT="#F7F7FF"> <div> <B>Tulbagh Info Information</B></div> <div> Witzenberg Municipality consumer accounts</div> <div> <TABLE BORDER="0" CELLPADDING="1" CELLSPACING="1" WIDTH="120" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER BGCOLOR=#0099CC HEIGHT= 15 ><NOBR><div> <A HREF="local_news.htm" TARGET="_top" TITLE="Tulbagh News Page 2"><U>Back to Local News</U></A></div> </NOBR></tD> </tR> </TABLE></div> <bR> <div> <B>Previous correspondence - if any - follows after in sequence below.</B></div> <bR> <div> <B>Email messages from Witzenberg Municipality  relating to a Query from John Veschini about a blocked electrical meter </B></div> <bR> <bR> <div> <B>Response from John (not responded to as at 19 February, 2010)</B></div> <bR> <div> 19 February, 2010</div> <div> Witzenberg Municipality<FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" > </FONT></div> <div> Accounts Department<FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" > </FONT></div> <div> Attention Mr. Hennie Le Roux<FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" > </FONT></div> <bR> <div> Dear Hennie,<FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" > </FONT></div> <bR> <div> Thank you for the lengthy explanation and the effort that you have taken to communicate (below). Generally it is the lack of response and communication that is the root cause of most of the reasons why I get so frustrated with this municipality. More of that to follow!<FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" > </FONT></div> <bR> <div> Whatever you do with that (your) consumer (not mine) to recover your outstanding debt will be welcome and appropriate to do so. Your credit control mechanisms must of course be tightened so that you don't allow arrears to occur in the first place?<FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" > </FONT></div> <bR> <div> <B>I note for the record that the meter for shop 14 (previously Tulbagh Cafe) is still blocked</B> due to non-performance by the previous consumer who absconded from my premises to open yet another business - this time in the 'Scheme' from a <B>residential premises</B> (your Town Planner, Hennie Taljaard has been advised of this but as far as I am aware the trader is still operating with impunity from the residential premises) - that means he still runs two businesses in town and is identifiable and traceable, so why can't the municipality collect its arrears from him instead of blocking a meter for another potential consumer and a tenant for me?<FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" > </FONT></div> <bR> <div> What this means to me is that it is a confirmation that due to the poor credit control mechanisms of the Municipality, I have lost a tenant for that shop as she was refused permission to open a consumer account and could not run any fridges and or deep freezers. This has legal implications and I shall take the matter up with my attorney as to how I am to be compensated for the rentals of December and January or until I can find another tenant and or subject to the date that the Municipality accepts the new tenant as consumer with a 'binding and enforceable contract' and upon proof of a lease with me (which I cannot sign anyway, as the municipality will not provide the tenant with electricity. </div> <bR> <div> Which brings me to the subject of your consumer 'contracts'. You may or may not have been aware that I suggested to David Nasson and whoever I may have copied to - some time back, that I did not believe that your consumer 'contracts' were indeed binding and enforceable contracts which would stand good in a Court of Law. I am not an attorney but I have a pretty good understanding of legal contracts and very seldom am I found to be wrong. Best Council looks at their contracts?<FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" > </FONT></div> <bR> <div> I am also aware that consumers on other properties that I manage are way behind in their obligations. Judging by the frustration and extra financial concerns that this 'huurskuld' business has caused me, no doubt the owners of those properties will also soon be having the same problem with the Municipality? As I am administrating the properties, I suppose it will be another frustrating and time consuming episode for me. </div> <bR> <div> Judging by past experience, I would expect that generally the same 'huurskuld or arrears problem' would apply across the board - including residential properties. Is this 'huurskuld or arrears problem' a further indictment on the ability of the Municipality to manage or control it's finances?<FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" > </FONT></div> <div> Wonderful that Council unblocked meters as a gesture for Christmas. I am not aware of everything that happens in Council until I see the minutes. But that does not alter the fact that my tenant had already closed her doors by then. </div> <bR> <div> Kind regards,<FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" > </FONT></div> <div> John Veschini<FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" > </FONT></div> <div> Tulbagh<FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" > </FONT></div> <bR> <div> <B>Subject:</B> RE: Tulbagh Cafe - Shop 14 Oude Meul Erf 245 Tulbagh </div> <div> Hi John</div> <div> Sorry for the delay in the response to the email below.</div> <bR> <div> <B>1.</B><FONT SIZE="1" COLOR="#FFFFFF" FACE="Arial" ><B> </B></FONT><B>Consolidation of accounts</B></div> <div> The officials internally, myself included, did not understand all the implications of those emails and therefore we had a clarity session. I thought it also use full to share with you the reasoning and outcome of that session.</div> <bR> <div> The term consolidation of accounts as used in the credit control policy means that one legal entity with numerous accounts, accounts may be consolidated when it comes to credit control. The implication of this is that if a one-man business has an account then that owner private household account may be blocked/restricted for the outstanding amount of the business and vice versa.</div> <div> This is however not possible in the case of a company, close corporation and other forms of legal entities in respect of there directors, because it is not the same legal entity.</div> <bR> <div> If the municipality wants to transfer an account, the account holder must provide the Municipality the right to transfer the account for example the business account to the household account. The reasoning behind this is mainly due to the fact that their might be VAT implications for the account holder. Transfer means physically from account number 110000 to account number 129000. This does not mean that consolidation for credit control purposes may not take place when it is the same legal entity.</div> <div> It does provide however the Municipality with an additional credit control mechanism on the account holder when it is a one mans business or a person with multiple accounts. Eventually the account is still linked to the original site and it remains link like that. This have the effect that owner/landlord is still overall liable to ensure that his/her tenant is not in arrears. That is the reason why the system was changed in order to show the tenants municipal account status on the owner account, for the owner to be in the position to act.</div> <bR> <div> <B>Specifically Tulbagh Café</B></div> <div> The Accountant: Credit control, Franklin Mars, was task to obtain the original services agreement in order to determine the legal entity of the account holder and if it was a one man business then to obtain the owners, ID numbers, residential address and if to search for any other account under that persons name and to institute credit control on the consolidated account of the owners.</div> <div> This was not done prior to the clarification session because the officials thought that they must transfer the account and that may not happen without approval of the account holder.</div> <bR> <div> <B>2.</B><FONT SIZE="1" COLOR="#FFFFFF" FACE="Arial" ><B> </B></FONT><B>Unblock of electrical meters</B></div> <div> Your spouse is aware of the fact, but for your information the Council took a resolution to unblock the electricity of all clients from the 22 December 2009 till 5 January 2010. This resolution was taken by council on a special Council meeting dated 18 December 2009. </div> <div> The new cut-off list has already been prepared and they are currently busy to block/cut all clients that are in arrears. Specifically Tulbagh Café is already blocked.</div> <div> Regards </div> <div> Hennie</div> <bR> <div> <B>Further email from John</B></div> <bR> <div> 19 February, 2010</div> <div> Witzenberg Municipality </div> <div> Accounts Department </div> <bR> <div> Attention Mr. Hennie Le Roux</div> <bR> <div> Dear Hennie,</div> <bR> <div> Consumer accounts</div> <bR> <div> I note from information received from one of my clients that her previous tenant absconded owing the Municipality approximately R5000. The address of the property for your information is 22 Voortrekker Street, Wolseley. She would have been liable as an owner, to pay the outstanding amount or would not have been able to get her new tenant to register as a consumer and the tenant would not have been able to supplied with services. </div> <bR> <div> The client is desperation wrote a letter to Mr. Marius Durand, the Head of the Ministry of Local Government in the Western Cape. He then communicated with the Municipal Manager. Finally the client called Mr. Johan Le Roux yesterday and was told that she need to only pay R60 on that account and the electricity would now be connected and that the Municipality would take action to recover the debt from the consumer.</div> <bR> <div> So what I am asking;</div> <bR> <div> Is it fair that an owner should have to go through all this effort to get a just result, whereby the Municipality finally accepts responsibility for its consumer and accepts that the debt was incurred as a result of a lack of adequate control measures?</div> <bR> <div> Now with regards to previous correspondence from me on the same subject, this is exactly what has been the thrust of my argument – which other than the above example, I have yet to have a response from the Municipality which will indicate that it now accepts that it is an unjust practice to allow consumer arrears to accumulate beyond the deposit amount, without cutting off the services and taking action against the consumer. </div> <div> I have yet to receive an acknowledgement that it is also unfair practice for the Municipality to seemingly ‘shrug its shoulders’ and expect the owner to pay any debts accumulated by a consumer who has entered into a contract with the Municipality. In fact I believe that what the Municipality is doing is illegal and a simple Court Order would suffice to get the Municipality to accept a new consumer and provide the services – irrespective of the debt of the previous consumer.</div> <bR> <div> I have yet to receive an acknowledgement that the Municipality should not have the right to make ‘arrangements’ with a consumer to allow the debt to remain unsettled or to allow the consumer to pay it off, without the owner having knowledge of, or being party to this ‘arrangement’ if the owner is ultimately going to be responsible for the payment of the arrears. </div> <bR> <div> I have yet to receive an acknowledgement that I was right in my argument from the beginning and the Municipality just cannot seem to come out openly and admit that they have been tardy in their accounts management?</div> <bR> <div> I have yet to have an acknowledgement that aside from the ‘rights’ that the Municipality has to levy charges etc. in terms of Section 4 of Chapter 2 of the Municipal Systems Act, they also have ‘duties’ as a Municipality too as in terms of Section 5 and must respect the rights of the public in terms of Section 6 of the said Act.</div> <bR> <div> I trust that this Municipality will adopt a thorough, fair policy towards the owners of property and manage their consumer accounts properly from now on and that I will no longer need to continuously ‘badger’ the Municipality on this subject.</div> <bR> <div> Kind regards,</div> <bR> <div> John Veschini</div> <div> Tulbagh</div> <bR> <bR> </td> <td valign="top" width=28 style=" border-top: 1px solid #0066CC; border-left: 1px solid #0066CC;border-right: 1px solid #0066CC; border-bottom: 1px solid #0066CC;" BGCOLOR="#0066CC" TEXT="#080000"> <bR> </td> </tr></table></body>