According to the Tshwane metro, its debtor’s book has grown by R10b since 2021, with major defaulters being residential property owners and businesses.

In 2021, the debtor’s book stood at R17b and rose to just below R28b by the end of October.

Tshwane states that R26b of the debt has been outstanding for more than 30 days. Earlier this year, the debt was R23.3b but rapidly increased to R27.83b within months due to delinquent customers and businesses.

The metro aims to collect R6.2b through the Tshwane Ya Tima campaign, which seeks to rescue the city from its growing debt while it owes Eskom nearly R7b.

MMC for Finance Eugene Modise confirmed that as of October 31, the city’s debt stood at around R28b.

“The total number of customer accounts is 825 200, and accounts with amounts in arrears total 478 871,” he said.

Modise highlighted that the Constitution mandates the metro to provide sustainable services, which requires customers to settle accounts on time. Non-payment compels the city to levy interest on overdue accounts as part of its credit control and debt collection measures under the Municipal Systems Act 32 of 2000.

Residents and businesses were encouraged to use the Tshwane Black Friday Special, which offered a 100% interest waiver for full account settlements by November 29.

Modise reported that revenue collection in October reached R3.68b, surpassing medium-term financial targets by 4%. The city aims to collect R4b monthly by January.

During October, the city logged 116 000 outbound collection calls, issued 48 526 final demand notices, and improved revenue flow. Modise stressed that revenue collection is crucial for meeting obligations, including Tshwane’s R6.76b debt to Eskom.

Spokesperson Lindela Mashigo outlined additional measures to promote payment, such as settlement arrangements ranging from six to 12 months and credit control measures like reminders, final demands, and disconnections for non-compliance.

The Financial Recovery Plan was implemented to strengthen Tshwane’s finances by improving billing, exploring new revenue streams, and enhancing service delivery efficiency.

Mayor Dr Nasiphi Moya noted that Tshwane’s total debt to Eskom exceeds R11b, of which R6.76b is overdue. A recent agreement with Eskom on settling this historical debt marked a significant milestone in the city’s recovery efforts.