Editor
The Umtshezi Municipality notice about the rates drew me to their website. This is well laid out and easy to use. One of the documents on the site is The Customer Care, Credit Control and Debt Collection By Law.
This document referred to clause 98 of the Municipal Systems Act 2000, which basically said the by-law must be written and adopted.
What caught my eye was clause 96 which says that all moneys must be collected and 96(b) “for this purpose must adopt, maintain and implement a credit control and debt collection policy, which is consistent with its rates and tariff policies and complies with the provision of this Act” Contents of Policy, (amongst others):
97(1)” A credit control and debt collection policy must provide for-
d) Realistic targets consistent with-
i) General recognised accounting practise and collection ratios: and
e) Interest on arrears, where appropriate;
f) Extension of time for payment of accounts:”
Not one word is mentioned about a late payment fee, so the question which begs to be answered is:
1) Does the late payment fee as reflected on the municipal accounts comply with generally recognised accounting practises?
2) Which act allows the municipality to charge a late payment fee as opposed to interest as stipulated in the Act and By-Law?
Wondering
Kindly be informed that the late payment fees forms part of the electricity services – tariff of charges. The terms and conditions of payment also appear on the reverse side of the monthly statement. Late payment fees are not applicable to rates.
PN Gamede – Umtshezi Municipal Manager
