MBOMBELA – The local municipality is continuing its quest to collect outstanding revenue from residents. Mbombela Local Municipality (MLM) recently embarked on the Lishumi eShumini – Rand for Rand payment-incentive scheme.
This allows residents with accounts in arrears to repay 50 per cent of what they owe Mbombela while the balance of their debt is written off.
But some residents who have paid up to date are not impressed. Mr Graham Holliday says he approached the municipality earlier this week asking for the form with which he can reclaim 50 per cent of the R14 000 he has paid MLM in rates since 2009. He lives on a farm on the dreaded Uitkyk Road.
“They said it doesn’t work like that. I said they were encouraging people to be criminals and not pay. I was stupid enough to pay. And we get nothing for our rates, no roads or sewerage services,” he said.
Ngala says the scheme does not unfairly benefit those who have not paid. “We give those who are behind an opportunity to get up to date with their accounts.” He added that though the municipality was not getting the full amount owed to it, it was not losing revenue.
“The scheme is aimed at achieving the opposite of costing MLM revenue as part of our revenue-enhancement strategy agreed to and sanctioned by council. As it is, the municipality is owed millions and this scheme seeks to collect at least half of the collectable money.
“Remember that the arrears are as a result of a number of reasons ranging from ownership of properties and people being indigent to some disputes that date to a number of years back. All of these situations can only be revealed when we engage with consumers as they approach us.”
Lowvelder reported earlier this year that the audited financial statements of the 2012/13 financial year which was tabled to council in January, showed MLM had outstanding receivables such as property rates and taxes and water bills totalling R259,6 million.
This week Ngala could not say how many applications for the scheme had been received to date, nor how much money was expected to be collected. “It must be pointed out that this is a once-off arrangement, so people must take advantage of it while it lasts.” The extended deadline for applications is October 31.
Read more on how electricty theft is also costing MLM millions in lost revenue.
