Sipho Mabena

By Sipho Mabena

Premium Journalist


Joburg debt relief programme has R4bn price tag

Application will be open next week, with qualifying consumers expected to receive immediate relief through a 50% debt write-off.


Joburg mayor Herman Mashaba’s debt relief programme has been met with approval from residents heavily indebted to the metro – but it will come at the heavy cost of more than R4 billion to the metro’s coffers.

According to the metro’s finance MMC Funzela Ngobeni, trying economic times called for an innovative approach to the sky-rocketing municipal debt.

The relief plan has received support in the council in June and aims at helping struggling consumers by focusing on rehabilitation and helping the metro tackle the rising number of debtors on its books.

By scrapping off historical debts under stringent conditions, the metro hopes to ensure future compliance from the residents.

Application will be open next week, with qualifying consumers expected to receive immediate relief through a 50% debt write-off.

Requirements to qualify for the programme include keeping their current accounts up to date and allowing for regular inspection of metered services. Only then the remaining outstanding debt will be written off over a three-year period.

The criteria for the programme are residential account-holders only, account balance in arrears for more than 90 days as at June 30, combined gross income of between R4,750 and R22,000 per month and the market value of the property and all properties owned by the applicant must not exceed R600,000.

Happy Zondi, from the metro’s finance department, said about 224 274 households qualified for the programme.

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