Information circulated during a recent eThekwini Executive Committee meeting indicated that the city has revoked its Covid-19 relief scheme amid fears of a financial collapse. The report confirmed a projected R13-billion in arrears, with the result that should debts not be collected, it will effectively run out of funds before the end of the year.
Following an all-time low collection rate of only 56% in April, the first full month of lockdown, it was suggested that disconnections for non-payment be implemented from July. Ward 97 councillor, Andre Beetge explained that with the city currently in such a precarious state, despite that many who are able to service their debt have taken advantage of the non-disconnection window afforded by lockdown regulations, it cannot continue to operate and provide services without implementing credit control measures.
He said that as part of its relief efforts, the city has approved reduced rates to bed and breakfast establishments and guest houses from commercial to residential, and a once-off interest write-off to all customers who entered into an arrangement with the municipality to pay 50% of their outstanding debt up front, with a 24-month payment plan for the remainder.
Rates rebates for senior citizens, disability grantees, child minder households and medically-boarded individuals have been renewed automatically for the new financial year. There was, however, no mention made of relief measures for those who do not own guest houses, but who currently find themselves as indigent, due to retrenchment or no income.
READ ALSO: Orange bag recycling programme to re-open in June
Although most of SA will only move to level 3 on June 1, that could effectively still exclude a large section of the economy from full operation, the city indicated that it couldn’t wait until such time as the pandemic has been declared no longer a treat to act, as with it being largely an open-ended question, there could well be nothing to save.
Leader of the Democratic Alliance in eThekwini, Cllr Nicole Graham, went on record as questioning the city’s late response to what was an inevitable outcome that would in terms of the proposed measures, see ordinary cash-strapped citizens facing disconnection during continued trying times. This against the backdrop of previous recommendations of a rates holiday and individual household means assessments, which remained largely ignored while the proposed 2020/21 budget includes bonuses for senior managers and annual increases for officials, the cost of which is to be recovered through what is believed to be excessive increases in rates and service delivery charges.
“As we are aware, the city was not able to read meters, but rather estimated or relied on residents to continue paying in line with ordinary usage during the lockdown months. The same report confirms the city’s commitment to, come 1 June and the easing to level three, prioritise the reading of meters to ensure that accounts are updated with the correct information, thus placing residents in a better position to service their actual bills or make the necessary arrangements for a payment plan.
I will not support the budget in its current format delivered during the virtual council meeting on Friday, 29 May, as I believe more should be done to assist residents with a situation over which they have absolutely no control and like other citizens, the municipality should sacrifice bonuses and salary increases to balance the budget,” said Beetge.
DID YOU KNOW?
Click on the words highlighted in red to read more on this and related topics.
To receive news links via WhatsApp or Telegram, send an invite to 061 694 6047
The South Coast Sun is also on Facebook, Twitter, Instagram and Pinterest – why not join us there?
Do you have more information pertaining to this story?
Feel free to let us know by commenting on our Facebook page or you can contact our newsroom on 031 903 2341 and speak to a journalist.
To receive our free newsletter click here
(Comments posted on this issue may be used for publication in the Sun)
