The ANC Caucus in Ekurhuleni has reiterated its call for a 75% debt write-off of all municipal accounts for households in the City, particularly the previous term’s debts, which are said to be above 90%.
The multi-party coalition government rejected the proposal, saying wholesale debt write-off is not financially viable as it could bring the municipality to its knees, thus hampering service delivery.
The metro, however, pointed out that it is drafting a debt review policy that will allow the City to assess debt relief applications on a case-to-case basis, which will see successful applicants receiving a percentage debt write-off.
The ANC initially made the call during the City’s ordinary council meeting held on January 27. It then reiterated that call on Twitter this week, and the ANC Chief Whip in the City, Jongizizwe Dlabathi, also reportedly repeated the proposal in a recent radio interview.
Mayor’s response
In her response on March 15, Ekurhuleni mayor Tania Campbell described the ANC’s call as a reckless and short-sighted proposal that might render the municipality unable to generate critically needed revenue to help give residents the quality service delivery they deserve.
“The multi-party coalition in the City has slammed the ANC for its ploy to incite civil unrest through its reckless proposal.
“The ANC-led coalition’s poor management of the City’s finances in the previous term has placed a severe strain on the municipality and brought it to the brink of collapse,” said Campbell in a statement.
Dire financial situation
The mayor said the multi-party coalition has worked tirelessly to stabilise the city’s dire financial situation, and they are committed to getting back to basics and delivering reliable and sustainable services to communities across the city.
“Our vision of good governance will not be derailed by the ANC, who are trying everything possible to bring the municipality to its knees. This will ultimately affect the poorest of the poor the most.
“Under the ANC-led coalition government, Moody’s credit rating downgraded the city, which has placed further burdens on borrowings, which now come at an exorbitant cost. As a result, we have had to reduce our proposed borrowings by R500m.
“The ANC Caucus is politicising the plight of ordinary residents in the city, while under their leadership they offered communities no hope. This is the ANC’s last ditched attempt to win back voters who they have failed for 22 years. The mobilisation of residents for political expedience is the lowest form of populism.”
Debt Rehabilitation Programme
Campbell pointed out that the Ekurhuleni Department of Finance and Economic Development is currently drafting a debt review policy that will allow the City to assess debt relief applications on a case-to-case basis.
“As a caring multi-party coalition government, we understand the effect the Covid-19 pandemic has had on our communities.
“As a City, we will grant debt relief responsibly to ensure the sustainability of the metro’s liquidity position.”
Campbell called for calm in Kwa-Thema and urged residents to engage with the government through the relevant legislative channels, such as ward councillors and ward committees.
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