City of Johannesburg Member of the Mayoral Committee (MMC) for Human Settlements, Mlungisi Mabaso, says shop owners renting space in a building owned by the Johannesburg Social Housing Company (JOSHCO) owe the entity about R2.5 million in outstanding payments.
Mabaso on Thursday led an operation in the Inner City this morning, in collaboration with the Department of Home Affairs, the South African Police Service (SAPS), and law enforcement agencies. The operation aimed to address concerns from local businesses about undocumented foreign nationals operating in the building.
Several shops were closed due to non-compliance, with some owners failing to produce valid residency documents.
“Combined, they owe us R2.5 million. They made arrangements and signed acknowledgements of debt,” Mabaso said.
However, he expressed frustration over the slow pace of repayments.
“They are not demonstrating a willingness to settle what they owe to the entity, which is JOSHCO,” he added.
Mabaso cited one shop owner who is paying R5,000 a month while owing nearly R600,000.
“If you do the calculations, it will take close to seven years to pay off the debt, including current rental payments,” he said.
He also highlighted another tenant whose permit allows him to remain in the country for only 24 months, yet his repayment plan would take 36 months to clear the debt.
“This means he could leave the country before completing payment,” Mabaso explained.
Some shops were closed because owners had “no ability to pay” but continued operating.
“They are employing foreign nationals and not contributing to the city’s coffers,” he said.
One shop owner, Mamoo Rashid from Bangladesh, who owes more than R200,000, committed to settling his debt within three months.
“I will pay in the next three months,” Rashid said.
Mabaso said officials would return in May to monitor progress.
Another shop owner, Mike Allahmay from Ethiopia, told Newsnote that he had owed R450,000 but received a discount and managed to settle the amount.
Allahmay, who sells women’s clothing and other products, now pays a monthly rental of R21,000.
The MMC noted that similar issues were raised during a visit to the area in June last year, particularly around subletting.
“We warned them that when we issue a lease to a businessperson, we expect them to operate in the space themselves and not sublet to others,” Mabaso said.
Allahmay added that he had been given three months to remove a tenant he had sublet to.
