In a significant move to assist financially distressed residents, the City of Tshwane council has approved the write-off of R32.5 million in municipal debt, benefiting 259 households.
The decision to scrap outstanding municipal bills was taken after the City’s affordability assessment committee concluded that the said debts were irrecoverable in the long run.
The report on the affected ratepayers unable to service their debts was tabled during a council sitting yesterday at Tshwane House, where the committee recommended that R 32.5m unpaid municipal bills for financially struggling residents be written off.
The committee had assessed the household income, amounts owed by debtors, including amounts they could afford to pay over a certain period.
The report said: “Two hundred and fifty-nine households were approved for debt write-off by the affordability committee. These households had a total debt of R46,335,034.72 and R32,506,136.38 is recommended for write-off.”
ANC councillor Neo Mocumi welcomed the report but warned that non-payment for services, illegal connections and disputes over billing accuracies have inhibited the City’s efforts to collect revenue.
“There is a culture of non-payment and we have to root it out. We, therefore, encourage responsibility and active citizenry and timely payment of municipal bills,” she said.
EFF councillor Ngoako Seanego said it has always been his party’s standpoint that poor residents ought to receive a relief in the form of municipal rates debt write-off.
“By approving this write-off report we affirm our dedication to inclusive and compassionate governance that prioritises the wellbeing of our communities,” he said.
Former DA Finance MMC Jacqui Uys said the council-approved report was to write off debt to residents, who applied to the city’s affordability committee.
“This is the last financial report that was brought by the DA in the previous administration and is the first step in a direction towards a reliable debtors book and increased debt collection percentage,” she said.
She said an aggressive debt collection drive called Tshwane Ya Tima is an important campaign to the City’s financial recovery.
The campaign, she said, was crafted under the DA-led administration to help those who can not pay to apply for free basic services and people struggling to pay to return into the payment net.
“What the administration must not do is a blanket write off of debt for specific areas due to pressure from interest groups, encouraging future default payments, in a costly attempt to win some votes,” Uys said.