Residents and business people are starting to queue for the incentive programme, aimed at increasing the payment factor which has already risen from 63% in August to 87% in October.
Improving the payment process
“Non-payment in this area is as old as 20 years, with some debt running as high as R500,000.”
Facing a skyrocketing amount of debt, the municipality’s revenue programme also involves going out to the public to appeal to those working in the government and private sectors.
“We need to get to these people. This was how the idea of an outreach campaign was born.”
After embarking on an extensive campaign encompassing oSizweni, Madadeni and Newcastle, approximately 1,100 consumers went in for the incentive scheme and 55% signedoff on debit orders.
BTO officials also saw an increased payment factor in the township areas.
Payment went from 24% in August to 40% in October, which is the highest it has been.
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Pay now before it’s too late
Explaining the extensive efforts of BTO, Haripersad said officials were calling and SMSing bill defaulters on a daily basis and four billboards in the greater Newcastle area encouraged consumers to take advantage of the incentive schemes.
“The 50% scheme ends at the end of December this year so consumers must act now.”
The scheme takes a two-pronged approach to recovering debt.
- According to officials in Budget and Treasury Office (BTO), the first part was to ensure consumers paid their bills on time each month over a two-year period.
- The second part of the programme, said Director of Financial Management Asha Haripersad, was aimed at businesses, people selling their property or those said to be ready to settle their accounts.
If they achieved this target, debt incurred before June 2017 would be scrapped.
“Of whatever is owed as of 30 June, 2017, if they pay 50%, the rest is written off.”
Explaining the current situation, Haripersad said Newcastle Municipality had a debtor’s book in excess of R1-billion, of which 80% was owed by individual consumers and nonpayment resulted in a deficit R20- to R25-million monthly.
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