Uthukela District Municipality (UDM) on Wednesday took a unanimous decision to write-off water account arrears debt.
This was tabled at a council meeting in Ladysmith and comes more than two years after the original resolution to write-off debts was taken on November 29, 2011.
On Tuesday morning UDM Speaker Tim Jeebodh explained that in order for the write-offs to be implemented, a financial reserve had to be set aside, this is required by law according to the Municipal Financial Management Act (MFMA).
He said that due to financial constraints, this reserve was finally in place and the first instalment of R70 million has been budgeted for to begin the arrears write-offs.
Currently the total amount of outstanding debt owed by consumers of all five municipalities within the Uthukela district amounts to R523 million.
Estcourt residents owe UDM about R53 million.
Mr Jeebodh says that the write-offs may begin this month or by April at the latest.
“The administration will come back to council with the procedure to effect the write-offs and hopefully that will start reflecting on the water accounts within the month,” said Mr Jeebodh. He added that the Estcourt community should feel vindicated, as it was the only town that acted against UDM’s unlawful tariff increase by taking it before the court.
“Public meetings will be called to explain to the residents what will be happening and to take the process forward,” he added.
“With the new administration in place at UDM, corruption has been brought right down and there are no known corrupt activities at UDM.
Service delivery is good to satisfactory and the call-out periods are shorter,” concluded Mr Jeebodh.