ELM debt collectors a flop?
According to the Democratic Alliance’s (DA’s) Gauteng Constituency Head, Emfuleni North Kingsol Chabalala, “Emfuleni has been marred in controversy over financial irregularities and poor performance. This is another blow for the municipality. R157 million is an extremely large amount for a municipality already in financial distress to pay. The DA encourages all residents who can afford to pay up their outstanding debt to the municipality to do so.”
VANDERBIJLPARK.- A meagre 13.37 % of outstanding debt has been collected thus far by MBD Debt Collectors, the company contracted by Emfuleni Local Municipality (ELM) to collect debt from residents on its behalf.
This was revealed to Sedibeng Ster last week. In response to a question about the progress in debt collection in the Gauteng Legislature, Cooperative Governance MEC, Paul Mashatile recently revealed that a meagre 13.37% of the outstanding debt has been collected to date.
In his response Mashatile said that MBD has been contracted to collect on all arrears of consumers that are not indigent. “In terms of policy pensioners are excluded,” Mashatile said. ELM contracted MBD debt collectors to the tune of over R157 million to collect all arrears from consumers in the municipality.
MBD was contracted two years ago for a three-year period; this was during the era of former Mayor Gretha Hlongwane who has since been redeployed to Sedibeng District Municipality where she is a member of the mayoral committee (MMC).
Mahole Mofokeng is the current executive mayor of ELM following election during the recent local government elections. Before elections Mofokeng had been standing in as ELM executive mayor after being deployed to the ELM from Sedibeng District Municipality as what was said to be a measure of intervention to rescue the municipality that was said to be in ‘tatters.’
According to the Democratic Alliance’s (DA’s) Gauteng Constituency Head, Emfuleni North Kingsol Chabalala, “Emfuleni has been marred in controversy over financial irregularities and poor performance. This is another blow for the municipality. R157 million is an extremely large amount for a municipality already in financial distress to pay. The DA encourages all residents who can afford to pay up their outstanding debt to the municipality to do so.”
Residents, private property and the business owners are encouraged to visit the ELM Customer Care Call Centre, which is operating from Monday to Friday during office hours in Vereeniging, for their rates and taxes-related inquiries. It is a partnership with MBD, and hopes to be a grief reliever for the taxpayers and a steering wheel for service delivery.
During the launch of the Revenue Collection Centre in Vereeniging in June this year, Mofokeng said: “As Emfuleni we only receive 10% grant money from both the province and national government. The rest of the money must be collected by you, the officials working here in the Call Centre. Please treat our residents – the customers – with dignity, professionalism and respect.” This was said after residents complained of SMSs threatening legal action and evictions from MBD.
Most community members have since stood firm that they will not pay ‘Masakhane’ for the services that they do not receive while other have raised the issue of incorrect billing demanding the scrapping of the debts and starting afresh on a ‘flat rate’. Mofokeng, himself, also acknowledged that several problems, ranging from poor revenue collection to billing related issues, corruptions and maladministration, were challenges the municipality had to tackle.
