A billing dispute amounting to R44 million, encompassing over R41 million for electricity and R3 million for water, between three Gauteng provincial departments and the City of Johannesburg is jeopardizing 22 child-care non-governmental organizations. The municipal disconnections arising from this dispute are reportedly in breach of binding high court orders previously issued to protect the affected campus. This ongoing financial disagreement and the resulting utility cut-offs pose a significant threat to the continued provision of essential services by these organizations, impacting vulnerable children across the province. The severe disruptions could compromise the welfare and educational support systems that the campus has long provided.
Campus Operations at Risk
The Children’s Memorial Institute (CMI) campus in Parktown serves as a critical hub, housing 22 statutory child-welfare non-governmental organizations. These NGOs provide essential services to vulnerable children across Gauteng, offering a range of support from child protection to psychological services. In addition to these vital organizations, the campus also accommodates the Johannesburg School for Autism, a specialized educational institution catering to students with autism spectrum disorder. This school provides a tailored curriculum and supportive environment key for the development of its learners. Further showing its multi-faceted role, the site hosts a provincial laundry facility, which is operated by the Gauteng Department of Health and serves various public health institutions in the region, including numerous hospitals. The presence of such diverse and critical entities notes the campus's importance within the provincial infrastructure.
Operations at the CMI campus face significant disruption due to the ongoing billing dispute. A key factor in this dispute is the disproportionate resource consumption by one of its facilities. The provincial laundry facility, managed by the Gauteng Department of Health, accounts for more than 90% of both the water and electricity used across the entire CMI campus. This substantial consumption by a single entity on the shared campus is central to the R44 million billing disagreement with the City of Johannesburg, directly impacting the ability of the NGOs and the special needs school to maintain services. The immense utility burden from the laundry facility creates an unsustainable financial situation for the other campus residents, who are not responsible for such high usage. The potential for further disconnections jeopardizes the continuity of care and education for thousands of beneficiaries.
Dispute and Legal Battles
The City of Johannesburg is alleged to be acting in contravention of Section 102(2) of the Municipal Systems Act by executing credit control actions during a formal billing dispute. This legal provision prohibits disconnections while a legitimate dispute over the account's accuracy is being processed, making the City's actions potentially unlawful. The ongoing dispute has led to significant operational challenges for the campus, creating an environment of uncertainty and constant threat of service interruption. These challenges include the need to secure alternative power sources and manage water scarcity, diverting resources from core service delivery.
A 2013 memorandum of understanding (MoU) stipulated that the Gauteng Department of Health would manage the master utility account for the entire property. This agreement placed the responsibility for overseeing and paying the campus's utility bills with the provincial health department, a key factor in the current billing impasse. Despite this arrangement, City Power executed a blanket electricity disconnection in late 2025, plunging the entire campus into darkness and forcing it to rely on emergency diesel generators. This drastic measure affected all entities on the property, including the special needs school and the numerous child-care NGOs, causing severe disruption to their daily operations and compromising the safety and well-being of the children in their care. The reliance on generators also incurred additional, unplanned operational costs for the already stretched organizations.
Adding to the financial strain, the Gauteng Department of Education (GDE) has accumulated a R2-million backlog in operational and maintenance contributions to CMI. This outstanding amount represents nearly two years of unpaid funds, further complicating the campus's ability to maintain its facilities and services amidst the utility dispute. This substantial debt from a provincial department exacerbates the financial instability at the campus, making it harder to address maintenance needs and ensure a safe environment for its residents. The combined effect of unpaid contributions and the utility billing dispute creates a precarious situation for the long-term viability of the CMI campus.
Official Statements and Concerns
The City of Johannesburg has issued new pre-termination notices for both water and electricity accounts at the Children’s Memorial Institute (CMI) campus. These notices precede potential disconnections, further escalating the billing dispute and instilling renewed fear among the campus residents. The campus hosts several critical organizations, including Childline Gauteng, which offers a national helpline for children in distress; the Teddy Bear Foundation, providing support to child survivors of abuse; Lefika La Phodiso, an art therapy centre; and Courage Child Protection, dedicated to protecting children from harm. These organizations provide indispensable services, and any disruption to their operations would have broad consequences for the vulnerable populations they serve.
While a baseline water meter was installed at the CMI campus in August 2025 to monitor overall consumption, the Gauteng Department of Infrastructure Development (GDID) confirmed that zonal meters required to isolate individual tenant consumption have not yet been installed. This absence complicates efforts to accurately apportion utility costs among the various entities operating on the site, making it difficult to resolve the billing dispute fairly. In a response dated August 21, 2026, the GDID acknowledged that non-profit organizations located on the campus should not bear the financial burden of provincial debts, suggesting a recognition of the distinct financial responsibilities within the dispute. This statement provides a glimmer of hope for the NGOs, indicating that their unique position as service providers for vulnerable children might be considered in the final resolution. However, without concrete action, the threat of disconnection continues to loom over these vital services.
