Endumeni Municipality owed R60-million in service charges

"We understand these are difficult times for everyone but residents who are struggling must come in and explain their situation. This will help everyone."

March 8, 2017

1 minute read

The total service charge debt outstanding to Endumeni Municipality is R60 272 882.
Most of the debt is historical, dating back to 2001 when Glencoe and Sithembile amalgamated with Dundee and Sibongile and debt was not written off and transferred to new accounts when the Endumeni Municipality was formed.
Just over half of the R60-million debt, R30 153 912, is owed by Ward 3, Sithembile, residents.

Interest, penalties and collection charges account for R24-million while R11-million is owed for refuse collection services.
Council is to consider granting a concession to those who are able to settle their rates account and then have all interest, penalties and collection charges written off.
However, the Council was reminded at last week’s Council meeting that the Prescription Act prohibits a rates write off until only after 30 years.
The Finance Department has recommended to Council that those who do not qualify for indigent support may be able to make use of such a concession to settle their accounts.

More money for pre-paid electricity

The report to Council recommends that ‘the concession should encourage those to pay their accounts and without the huge arrears and interest raised on old service charges, the monthly account will be reduced, enabling them to have more money available for pre-paid electricity’.
Desi Padayachee, acting municipal manager, said the collection rate has improved for current accounts but collection for old debt ‘is very slow’.

There are also plans to engage a reputable, independent debt-collecting company which the Council will only pay on a commission basis.

“People who are in arrears must come to the municipality to make arrangements to pay off what they owe. “As long as they stick to it and do not stop paying again after a few months, their account will be reduced as this will assist with the municipality’s long-term financial viability.”
There are also plans to engage a reputable, independent debt-collecting company which the Council will only pay on a commission basis. “We understand these are difficult times for everyone but residents who are struggling must come in and explain their situation. This will help everyone.”