Eastern Cape muni scraps R300m in water debts
The OR Tambo District Municipality in the Eastern Cape has announced an amnesty on water debt for households, schools, NGO’s and businesses.
|||Port Elizabeth – The OR Tambo District Municipality in the Eastern Cape on Wednesday announced an amnesty on water debt for households, schools, NGO’s and businesses.
Annoucing the amnesty, Executive Mayor Nomakhosazana Meth said: “The institution offers 70% as amnesty for the domestic households, churches and private schools debtors no matter the aging”.
The mayor said this will result in the consumer paying 30% of their debt.
However, half the remaining debt will have to be paid immediately with the current billing and subsequently the remainder paid within nine months of effecting the amnesty.
“Where the remainder is not paid within nine months including monthly billings, the amnesty falls away and the full debt amount is payable,” Meth said.
By implementing amnesty the municipality will forfeit an amount of R299.7 million in water bills.
The mayor said the institution, through the council, has adopted a “Yizani sakhe” as revenue collection strategy.
“Our Revenue Strategy is based on the premise that local government has a legal right to impose property taxes, fees and user charges in accordance with its assigned fiscal power, and that it should recover adequate revenues to cover spending responsibilities.”
Meth said the strategy took into account the economic plight of the people of O.R Tambo District Municipality.
“Yizani Sakhe as the strategy recognises that addressing the consumer debt problem is a mammoth task. The strategy serves to address cost cutting measures in particular the reduction of water losses,” said Meth.
Household debtors, as of August last year, amounted to R381 million and the NGO’s debt amounts to R11 million, totaling R392 million, which is 86% of the total debt of R457 million.
Business debtors as of August last year owed R50.6 million, which is 11% of the total debt.
“The offer by the institution is to effect amnesty for the business debtors by writing off 50% of the debt for each consumer no matter the aging,” said Meth.
The mayor said the debt amnesty will result in the consumer paying only 50% of their debt. Half of the remaining amount has to be paid immediately with the current billing and subsequently another 25% be paid within six (6) months of effecting the amnesty. Where the remainder is not paid within six months, the amnesty fall away and the full debt amount is payable.
The government debtors as of August last year amount to R 14 million. There is no amnesty for government and strict implementation of credit control and debt collection policy is expected to be implemented.
Meth said reliable consumers, who pay their accounts regularly, the municipality will effect a 5% discount on the bill, but only if the payment is received before the 7th of the following month of billing.
The discounts will run for six months and if there is any month that the consumer fails to pay due amounts, the discount will be discontinued.
The municipality also agreed to establish a process to write off debt that arose as result of leakages.
African News Agency
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