DA condemns metro’s plan to write-off R3-billion in uncollected municipal services debt
"Our communities are crying out for service but the failing government finds it easier to write-off unpaid debt than taking legal action against those who default on their payments or encouraging payments." - Cllr Reid
The DA in Ekurhuleni has strongly criticised the local government’s plans to write-off roughly R3-billion in unpaid municipal service debt.
According to Cllr Bruce Reid, DA Shadow MMC for Finance in Ekurhuleni, this is a cheap political ploy just before the upcoming elections.
“In terms of the Prescription Act, it is accepted law in South Africa that refuse, rates and sewerage charges prescribe after a period of 30 years; whereas water and electricity charges prescribe after a period of three years,” said Reid.
“This means the City could recuperate some of the outstanding rates when the property is sold. Instead, the ANC-led metro wants to write-off 86.6 per cent of the debt or R3-billion which is owed by 162 444 properties that are valued at R750 000 or less. These properties have 838 977 municipal accounts.
“We believe that if the metro was serious about debt collection, service delivery could be drastically improved and new services rolled out to poorer communities.
“For those residents who cannot afford to pay, the City must actively update its indigent register to ensure our most vulnerable are afforded service delivery.
“Prepaid water meters need to be installed for residents who are in arrears to control consumption.”
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