Buffalo City's Chief Financial Officer Brian Shepherd has issued an ultimatum to municipal account holders in arrears: pay now if you don't want to have a black Christmas.

The harsh campaign under the sound bite, "Pay now - it is the bright thing to do", is being launched this week.

The city is owed R370-million and the ultimatum is part of a tough new December clampdown to collect money while swooping on domestic, business and government defaulters by cutting off services.

"We have exhausted all humane and caring means to carry out our legal obligations to collect outstanding money. We are under pressure from National Government to prove that we do not merely depend on grant funding but can demonstrate clear-cut strategies to collect outstanding money and enhance revenue management," Mr Shepherd said.

"In the light of this, I have now been instructed by the City Manager that if cut offs are the only means to ensure that we maintain a livable, functioning and financially sustainable city, so be it.

"We are coming for all defaulters," said Mr Shepherd, who is making sure all systems and processes are in place to enable hassle-free payment and instant answers to queries.

The campaign threatens to name and shame defaulters publicly and will review the costly system of handing over accounts to lawyers for collection. Selling defaulters' properties to recover outstanding money by shortening the route is also under review as a last resort.

"These are harsh measures that we don't want to use but we have no alternative if the city continues to bleed financially. If consumers continue to hold the success of the city to ransom by not paying, the law will have to take its course," Mr Shepherd said. "And the law is clear: political and administrative leaders are legally liable if they fail to collect municipal money. No politician or official can be expected to go to jail for consumers' debts."

The campaign will be accompanied early next week by a blitz of thousands of pamphlets and posters, banners, newspaper advertisements as well as radio jingles that will emphasise the consequences of not paying their municipal accounts.

A catchy SMS is being sent to all Buffalo City staff as a start and it is hoped to extend the message outside the municipality. It reads: "Pay your municipal accounts … it is the bright thing to do. Please remind your family and friends."

Mr Shepherd said he was satisfied that the municipality had a fair Credit Control Policy and that all reasonable means had been made to warn defaulters and to sort out any queries. Customer Care is in place and he was comfortable that all reasonable methods had been employed to enhance revenue management.

"We are sitting with a terrible defaulter profile that shows it is not the poor who are disrupting our cash flow. Business - commercial and industrial -- owed us R52 428 871 as of 19 November 2003 and there is still some outstanding government accounts which we expect will be settled before the festive shutdown," Mr Shepherd said. "The safety net for the indigent remains in place with free 50kw/h electricity and 6kl of water a month. All other consumers receive 20kw/h and 6kl free."

"Many households that can afford to pay their lights and water accounts put such payment low down on the priority list while they go on a Christmas spending spree. They think they can catch up with payments in January. They had better think twice if they don't want a black Christmas," said a determined Mr Shepherd, who believes that it is high time that the buoyant economy and rate cuts which have put more money in consumers pockets are also reflected in their payment patterns.

"Our message is simple: don't go on a Christmas spending binge and forget about your municipal accounts. The consequences will be drastic."