The City of Mbombela (CoM) is implementing a stringent revenue enhancement strategy and enforcing its credit control and debt collection policies to ensure all outstanding funds due to the City are collected.
According to the CoM’s spokesperson, Joseph Ngala, the municipality is owed R212m by public entities, R170m by local businesses, R688m by private households, while ‘other debtors’ owe about R11.6m for services rendered.
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“As part of the revenue collection drive and rigorous implementation of credit control, the municipality has embarked on a sting operation, Operation Cima, targeting the top debtors with active consumption and over 60 days of outstanding debt. Through Operation Cima, the City has so far collected an amount of R161m as of December 31 last year,” Ngala said.
He added that the municipality is also handing over debtors with outstanding accounts of more than 180 days to professional debt collectors, which were contracted under RT27-2019 by the National Treasury as a measure to recover outstanding debt and implement stringent debt collection measures.
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“The City is also enforcing credit control by disconnecting services on arrears accounts. Customers who are in arrears with their municipal account will have their electricity, water and other municipal services suspended, restricted or disconnected until such time payment is received or a payment arrangement has been made with 50% of the arrear amount paid upfront,” Ngala said.
