Damning city ruling

SHAMBLES: JOBURG ACCOUNTING, BILLING SYSTEM PROBLEMS LAID BARE

- Roy Cokayne

The problems with the accounting system of the City of Johannesburg were laid bare by a damning judgment handed down in the High Court in Johannesburg in which a property owner claimed the city conjured up inflated, excessive and contrived "false actuals" for electricity charges.

An application by the city for summary judgment against MirAir Prop (Pty) Ltd, the owner of a property in Stormill Extension 3, for R1 677 739.34 in electricity charges, interest of 10.75% a year, and the costs of its court application was dismissed by Acting Judge Stephan van Nieuwenhuizen this month.

Van Nieuwenhuizen issued a punitive cost order against the city and granted Mir-Air leave to proceed with the conduct of its defence in the matter.

'Quantum' jumps

A verification affidavit by Tuwani Ngwana, the city legal adviser, said the quantum in ruling against the claim of R1 677 793.24 in respect of Mir-Air's liability for electricity as at 11 December 2023 had jumped from the original figure stated on the account number for the property to R4 447 841.07.

Mir-Air disputed the totality of the inflated, excessive and contrived electricity charges levied by the city on 17 August 2020.

The company said the city had raised additional charges, which it disputed and was indicative of the abysmal and chaotic state of the city's accounting system.

Mir-Air denied being indebted to the city for any amount under any purported account number raised or referred to by the city and claimed it was in credit of municipal charges/fees.

David Alistair Lang, a director of Mir-Air, said in an affidavit the city did not plead any period during which electricity was supplied to the property nor that electricity was supplied at all.