Rustenburg Local Municipality overbilling scandal heads to trial after court defeat

18 Sep 2025 in Press Statements

Note to Broadcasters: Please find attached soundbite in English by Tony Bridger

The Democratic Alliance (DA) in Rustenburg welcomes the North West High Court’s decision to dismiss, with costs, the Rustenburg Local Municipality’s (RLM) attempt to have a R2.1 million electricity overbilling case removed from the court roll.

The DA has repeatedly raised the municipality’s failure to implement its own Credit Control Policy at both Portfolio and Council meetings. At the most recent Portfolio and Finance Committee meeting, the DA demanded a strategic plan to address this critical risk be tabled before Council without further delay.

For far too long, RLM has relied on arbitrary monthly estimates when billing residents and businesses. This has resulted in gross overcharging, often leaving residents facing erratic accounts and disconnections, even when they have attempted to provide their own meter readings.

The case in question involved a local business that was billed for 100kWh every month, regardless of consumption, even during periods when the property was vacant. The court found RLM’s attempt to have the matter withdrawn unjustified, ordering the municipality to pay legal costs and referring the matter for trial. This is yet another example of wasteful expenditure borne by residents due to RLM’s incompetence.

Many residents can attest to the municipality’s chaotic billing system, which frequently leaves them cut off incorrectly and forced to spend money to correct municipal errors. The fact that at least two private companies now profit by charging residents to resolve these billing disputes speaks volumes about the scale of dysfunction in RLM’s administration.

Shockingly, RLM issues bills amounting to an estimated R160 million each month yet fails to collect most of it. Instead of enforcing proper credit control, the municipality allows selective and inconsistent practices, resulting in huge sums being written off as bad debt. This reckless mismanagement leaves little funding available for essential infrastructure and maintenance.

The DA will continue to fight for the residents of Rustenburg, who deserve reliable services, accurate billing, and accountable governance. It is clear that the ANC-run Rustenburg Local Municipality is incapable of delivering on even the most basic responsibilities. In 2026, residents must use their vote to end this cycle of incompetence and waste.