eThekwini Municipality cracks down on unpaid bills: What it means for government departments
eThekwini municipality enforces strict debt collection measures, leading to the shutdown of vehicle licensing centres in KwaZulu-Natal, including the deserted Rossburgh licensing and testing centre, as government departments face disconnection for unpaid rates.
Image: Doctor Ngcobo / Independent Media
eThekwini municipality has stated that all customers, including government departments, are expected to settle their accounts or face disconnections according to the municipality’s Credit Control and Debt Collection Policy.
This follows the forced shutdown of vehicle licensing and testing centres in KwaZulu-Natal, which began towards the end of November after the municipality cut electricity and water services due to outstanding rates bills.
The municipality's policy states that "arrears on rates, services or any other consolidated debt may result in disconnection of any service or in a restriction of use of municipal facilities."
The closures, which have severely affected the public, staff, and service delivery, occurred as many motorists rushed to convert their vehicle registration numbers to the new licence plate numbering system.
Provincial Transport MEC Siboniso Duma stated on Friday that the Durban region's centres had been "badly affected," including Rossburgh and Umdloti, despite engagements with the KZN Department of Public Works and Infrastructure (DPWI).
The core of the issue lies with the provincial Department of Public Works, which, as the custodian/landlord of the properties, is responsible for the outstanding rates bill.
Provincial Public Works spokesperson Steve Bhengu acknowledged that the department owes the City approximately R500 million.
Bhengu explained that while Public Works takes responsibility for the payment of outstanding rates, the payment of water and lights is the "onus of each department."
The KZN Department of Transport confirmed it had settled its own electricity and water bills for the facilities.
The annual bill for rates across the 10,067 government properties managed by Public Works is R1.8 billion; however, the department only receives R900m from its budget allocation. The debt dates back to 2005.
Responding to a request for comment made last week, eThekwini Municipality's director of communication, Mandla Nsele, declined to discuss specific customer account information.
“We wish to emphasise that all customers, including government departments, are expected to settle their accounts. Where arrears exist, disconnections are implemented in accordance with eThekwini Municipality’s Credit Control and Debt Collection Policy.
“These measures are standard practice and are applied consistently to ensure financial sustainability and the continued provision of municipal services to all customers.”