Metro’s debt bemoaned
The Tshwane metro is planning to write off millions from the city's indigent debtors.
Andrew Ngozo
That the Tshwane metro was owed millions by residents is proof that it has a poor revenue collection system, says the DA.
DA councillor Mogkanya Ramohoebo said this week the Tshwane metro had failed to collect about R114 million from indigent residents which showed that it did not apply its indigent and credit control policies properly.
“This is why the metro is backtracking and failing to prosper and succeed because it is an institution that does not have the ability to collect what it is owed.”
Ramohoebo said the metro presented a report in council regarding the writing off of businesses debt in June this year.
“A few months down the line, the metro wants to write off household debt which stands at just about R114 million. What is worrying is that the problems raised then are the same problems cited now.”
Ramohoebo said this showed the metro’s administration had learnt nothing and the poor management of the indigent register and credit control systems would, simply, continue.
This was a vicious cycle, he contended.
“Nobody wins in this situation. The poor are left in a cycle of debt only to be bailed out annually through the write off. The city loses income from paying residents whose rates must be applied to make good the expenditure on bulk services incurred from where the revenue is written off.”
He said the DA believed proper oversight, administration and control could help prevent residents from falling into debt beyond their means.
Tshwane metro spokesperson Lindela Mashigo had not responded to email questions at the time of going to print.
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