‘We must collect what is owed’ – metro
“Our governance responsibility is to ensure we are sustainable and financially sound, even during economic challenging times.’
The Tshwane metro has responded to Mamelodi residents’ demands to stop issuing final demand letters, stating they gave them enough notice that it would be collecting outstanding debts.
Mamelodi Concerned Residents for Service Delivery said some of the residents have resorted to paying R40 per month because they could not afford the thousands of rands required.
MMC for Finance, Mare-Lise Fourie said the metro issued a statement in November 2020, informing all residents of Tshwane that it had hired debt collectors to recoup the outstanding debt from all households and businesses in Tshwane.
“The metro must collect what is owed to it. It makes us unpopular but it is our responsibility to manage its finances, pay creditors such as Eskom and Rand Water for bulk purchases and provide services and for that we require revenue.
“Our governance responsibility is to ensure we are sustainable and financially sound, even during economically challenging times,” said Fourie.
Fourie said the practice of estimating consumption when meters are not read is not illegal.
“Unfortunately, the events of 2020 resulted in a serious decline in actual meters readings. This challenge was attended to and corrected in 2021 and 91% of the meters in Mamelodi was read during August. Previous meter reading performances in the suburb were 79% in July, 83% in June and 77% in May 2021.
“There are many areas in the metro where collection rates have not been satisfactory and customers have accumulated debt over some time,” said Fourie.
“The metro is responsible to collect outstanding debt and credit control action must be taken against any accounts in arrears. These actions include the issuing of a final demand, disconnections and the use of debt collectors if accounts are in arrears for 120 days or more.”
Fourie added that the metro has the following programmes that customers can engage in to address outstanding debt on their accounts:
– Application to register on the indigent register in accordance with the approved policy. This programme is managed by the Community and Social Development Department.
– Applications to the established affordability committee managed by the Group Finance Department to assist customers with affordability challenges; and
– Customers can enter into arrangements to pay off the debt.
She said residents were invited on numerous occasions and on various platforms to address the challenges they may face.
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