Polokwane Municipality’s debt book hits R2b mark

POLOKWANE – Polokwane Municipality’s debt book has hit the R2bn mark towards the 2024/24 financial year which ended on 30 June 2024, and has recorded a substantial increase since the 2015/16 financial year when debtors owed the local authority around R781m.

A concerning factor, however, is that a percentage of 70% of the debts are older than one year.

According to the financial report that was tabled in council at the end of August, the total debt was R2.033bn, made up by households (R1.315bn), commercial customers (R441.4m) and organs of state (R275.2m).

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The accounting officer indicated that the increase in the overall debt in addition to the main services emanated from the increase in disconnecting fees and reminder notices, debt adjustments or journals for services, penalties and tax charges and finally, non- and low payment from customers, especially those with conventional electricity supply.

A light in the tunnel is that the municipality recorded a payment rate of around 94% for the month of July.

This is, according to the municipality, attributed to the vigorous campaign to terminate electricity supply by blocking prepaid meters in instances where consumers were in arrears and did not make satisfactory arrangements regarding the settlement of their accounts.

The municipality encouraged consumers to take advantage of the opportunity to make arrangements to settle their accounts by payment of 20% (households) and 50% businesses) of the arrears and the balance in installments.

The regular monthly accounts should however still be settled before the final date to prevent termination of services.

DA councillor in the municipality, Jacques Joubert said the DA in Polokwane welcomes the 94% debt collection rate for the month of July 2024, which is a big step towards the national norm expected of 95%.

“The reality is, however, that a constant rate of 95% is needed to get us under the R2 billion debt book level. Debt collection rates in the 80-89% range would not cut it,” Joubert reckoned.

“With Mankweng’s debt continuously growing, the suburb owes close to 20% of Polokwane’s debt book at almost R400m. Government departments owe in excess of R270m, combined their debt amounts to 33% (a third) of the municipal debt book,” Joubert added.

Joubert stressed that the continued unavailability of water and electrical meters is a matter of great concern.

“The municipality is not getting the basics right at this stage. Meters are bridged or straight-lined by the municipality due to the lack of meters, thus giving out precious resources to the public unmetered and if charged, it’s only at an estimated minimum level,” Joubert said and added that the Auditor-General highlighted the 36% water losses amounting to R87m in the 2022/23 report.

“This amount will increase significantly with the municipality having connections unmetered,” he said.