eThekwini councillors approve 50 percent debt write-off for residents and businesses
Image: Independent Newspapers
eThekwini councillors have approved the proposed special debt relief programme intended to assist domestic and business customers with a 50% debt write-off of their arrears' debt, as at January 31, 2025.
This was on condition that domestic and business customers pay 50% of the corresponding debt in full and final settlement.
The matter was discussed at a council meeting on Wednesday and the special debt relief programme will run until June 30, 2025. This is one of the debt collection and debt reduction strategies developed by the eThekwini Revenue Management Unit.
The water debt as at the end of January 2025 was sitting at R14.7 billion. The municipality stated that the biggest contributor to this debt is undetected underground leaks and short payments by the insurance. The municipality has found that many customers are unable to settle these debts and thus regarded this as irrecoverable.
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The total debtors' book for the municipality, including interest charges as of January 31, 2025, was R36 billion. The municipality stated that the debtors' book grew significantly by R7.9 billion when compared to January 2024.
Organs of state, including government and parastatals' accounts, amount to R1.3 billion. Other conditions put forth before the council were that after the customer settles 50% of the arrear debt owed as at January 31, 2025, the customer must settle the entire debt for the months of February 2025 to April 2025.
The municipality stated that, should a customer not be in a financial position to settle the debt for the months after January 31, 2025, such a customer must enter into a payment plan not exceeding six months, without making any down payment.
Also, all water loss insurance customers who had submitted claims for water leaks, but were paid by the insurance only part of the amount claimed, the difference (capital debt) between the amount claimed, the average monthly consumption, and the amount paid by the insurance, could be written off.
ANC councillor Nkosenhle Madlala said the programme was important because these were some of the issues raised by the communities during the Integrated Development Plans (IDP) public consultations.
Madlala said this programme came at the right time because people were saddled with debt.
"The ANC encourages people to take this opportunity with both hands to avoid a last-minute rush. I encourage those in rental flats and those with bills in their names to come forward and benefit from this programme," he said.
zainul.dawood@inl.co.za
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