In an effort to decrease its debt book that currently amounts to more than R1 billion, Polokwane Municipality will set an example to other municipalities in the country by intensifying its drive to collect outstanding debts.
In an exclusive interview with Polokwane Observer after her address in the debate on President Cyril Ramaphosa’s State of the Nation Address in the National Assembly last Wednesday, Polokwane Executive Mayor Thembi Nkadimeng in her capacity as President of the South African Local Government Association (Salga) said that the debt owed to municipalities far outweighs the debt municipalities owe to Eskom and water boards.
“Households account to the majority of the debt (R120 billion), followed by business (R25 billion) and lastly government, which owes R10 billion. It is evident that there is a clear link between the ability of municipalities to pay debt – including that owed to Eskom and water boards – with the inability of the municipalities to collect revenue from government, businesses and households for the services that they deliver,” Nkadimeng explained.
According to Nkadimeng, the situation is becoming untenable for municipalities that are constantly threatened with disconnections by Eskom and water boards.
Nkadimeng said that Salga has recommended to municipalities to “aggressively and on an ongoing basis” use credit control measures such as targeting government properties and businesses with disconnection if there is sufficient merit to do so and if it is in line with credit control policies and that Polokwane Municipality has already taken the lead by disconnecting government departments.
“We will not disrupt the operations at schools and hospitals but will continue to disconnect administrative offices of defaulting departments and also intensify debt collection from the business sector,” Nkadimeng said.
Nkadimeng emphasised that although households are the best payers, the installation of smart meters will largely contribute to an improved culture of payment for services.
Story: BARRY VILJOEN
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