Operating income spikes despite a falling collection rate – DA
The DA says that regular paying metro customers are the ones who have to pay for the ANC-led metro’s failing credit control.
According to DA Clr Estelle Visser, a scrutiny of the metro’s unaudited annual reports from the 2013/14 financial year shows that the metro has an almost R3-billion increase in its operating income despite a falling collection rate.
“The metro’s new valuation roll allegedly came into effect on July 1 last year, and it is the increased revenue from service charges such as water, electricity, sanitation, sewerage and solid waste that allows for the rise in the operational budget.
“This is because the revenue collection rate has dropped by almost three per cent which in real terms are R750-million lower than the targeted collection rate,” says Visser.
“What this means is that residents who regularly pay their bills are paying more and more to cover the costs of the residents who routinely do not pay the metro.”
The Advertiser contacted the metro for comment on this subject, but no response was received before publication. – @IschkeBoksburg
My rates account inctreased from less than R1000 to more than R2000 in the last few months alone.