eThekwini councillors divided over new debt relief programme for residents
Image: Independent Media Archives
eThekwini councillors had mixed reactions to the special debt relief programme, an initiative aimed at reducing municipal debt by offering residents and businesses a 50% write-off, provided they pay the balance in full.
The eThekwini Revenue Management Unit (RMU) devised the annual debt collection and debt reduction strategy to run before the end of the June 2025 financial year. Other conditions put forth were that, after the customer settles 50% of the arrears debt owed as of January 31, 2025, the customer must settle the entire debt for 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.
The water debt as at the end of January 2025, of R14.7 billion, was the biggest contributor, due to undetected underground leaks and short payments by insurance. The municipality has found that many customers are unable to settle these debts and thus regard this as irrecoverable.
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The total debtors' book for the municipality as of January 31, 2025, was R36 billion, which grew significantly by R7.9 billion, when compared to January 2024.
At the end of the 2023/2024 financial year, the municipality had made provision for doubtful debt in the amount of R19 billion while in the 2022/2023 financial year, it was R13 billion.
The debt programme was approved at a council meeting on Wednesday, with councillors calling for an extension of the June deadline because they felt that many residents would be left exposed to debt collection actions if they did not find the money.
DA councillor Alicia Kissoon stated that debt relief must come with accountability and not just demands.
Kissoon said residents are suffocating under the weight of historic municipal failures, which are failures they did not create.
'For years, households have endured broken meters, inaccurate bills, undetected leaks, and little to no redress. This has eroded trust and pushed many to the brink. Now they are told to find 50% of their arrears just to qualify for help. For many, that is not relief but survival, weaponised as policy,' Kissoon said.
Kissoon said residents deserve a clear, compassionate, and coordinated rollout, real-time support, and capacitated officials, which are essential if this intervention is to be meaningful.
'No resident should be forced into settlement agreements for charges they do not lawfully owe. We will not stand by while families are pressured into financial concessions for the city's administrative mistakes,' she said.
Close to 5,000 eThekwini councillors and senior managers have fallen behind in paying their municipal accounts, with staff debt standing at R80 million.
Nkosenhle Madlala, an ANC councillor, said that during a budget imbizo, one of the issues raised by the communities was that they were saddled with high bills and owed the municipality money.
'I want to encourage our employees who are also saddled with bonds and other debts and who are buckling under indebtedness to come forward and make use of this programme. The municipality must not be quoted in reports stating that we are failing to collect debt from our employees. Some employees are so over-indebted that there is nothing to take from the payslip otherwise; we will be sending the employee home without any money,' Madlala said.
Jay Singh, of the United Independent Movement (UIM), emphasised that the government and parastatals' R1.3 billion debt should not exist, and greater emphasis should be made to collect the outstanding money.
Minority Front councillor Sunitha Maharaj suggested that the Revenue Management billing system must be replaced and that the municipality revert to separate billing for rates, water, and electricity.
'Our billing system, if not replaced, is going to require more debt relief strategising to reduce the city's debtor book,' Maharaj said.
zainul.dawood@inl.co.za
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