According to recent reports, City of Joburg residents who meet certain conditions can qualify to have up to 50% of their municipal debt written off.
The Star reports that this debt rehabilitation programme was approved during a council meeting earlier this week.
Member of the mayoral committee (MMC) for finance Funzela Ngobeni described the move as a breakthrough and welcomed the measure as an innovative approach given the current economic climate.
“For years the situation has been left unmanaged and resulted in a large debtors book and an insurmountable debt burden on the purse of our residents who are already stretched and battling to keep abreast during these hard financial times,” said Ngobeni.
This namely applies to people whom he described as “residents existing on the fringes of the active economy.”
Those who wish to make use of the service will have to apply through the city’s specialized application process.
Ngobeni said that qualifying customers will receive immediate relief through a 50% debt write-off.
“If the customer complies with all the requirements of the programme – which include keeping their current accounts up to date and allowing for regular inspection of metered services – the remaining debt will be written off over a three-year period,” he added.
A write-off is only applicable to residential account holders;
Ngobeni said that the city will embark on educational roadshows in August, with the application process set to officially start in September.
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