No blanket write off of debt, says metro

“The credit control action and the Tshwane Ya Tima campaign will not be stopped,” says MMC for finance, Petter Sutton.

Sutton said this while answering a question at a Lotus Gardens, Atteridgeville and Saulsville civic association (Lasca) meeting recently.

Sutton addressed Lasca in response to demands raised in a memorandum submitted to the metro during a June 14 community meeting.

Lasca residents have demanded the following:

– Scrapping of credit control actions

– Scrapping of the Tshwane Ya Tima

– An end to the harassment by debt collectors appointed by the DA-led coalition

– No member of Lasca should make any arrangements on the arrear estimated bill.

“What we are dealing with is a culture of non-payment and a refusal to pay,” said Sutton.

“This is part of the reason why we can never agree to a blanket write-off. We will collect the outstanding debt from these households. When people can’t afford to pay the debt owed to the municipality, can apply for a partial or full write-off,” Sutton said.

Lasca believes that Tshwane Ya Tima targets the poor in informal areas.

The metro, however, states that it has access to residents’ banking details for each household in Tshwane including households in Lasca areas and in most cases people simply don’t want to pay.

Sutton said that credit control through debt-collecting companies will also be continued despite the demand for it to be discontinued.

Lasca raised the problems with estimated bills and therefore would not pay.

“As explained, we will still collect on property rates and waste collection and once the estimated consumption is corrected with actual readings, this debt will also be payable,” Sutton stated.

The municipality stated that by law, it must collect all monies owed for property rates, electricity, water, sanitation and waste collection.

“Tshwane does not issue estimated bills and there is no such thing as an estimated bill in existence. In cases, as warranted by the municipal legislation, consumption of water and/or electricity is estimated,” he said.

“A municipal account consists of property rates, electricity, water, sanitation, and waste collection. Only the consumption of electricity and water can be estimated. Property rates and waste collection are not estimated, they are fixed amounts.

“To argue that all arrear debt must be scrapped is misleading. Property rates and waste collection must be collected.” Sutton said.

The metro said that it has no intention of scrapping any debt relating to property rates and waste collection.

Sutton added that where consumption has been estimated, a correction needs to be made with an actual reading. This will be done by substituting the estimation with an actual reading as the system will automatically correct the amount.

“The metro agrees that estimated consumption must be the exception and not the norm and that we must move to increase actual readings. We are investigating various options for this,” Sutton said.

The MMC also addressed West residents on electricity and water meters, flat rates, indigent households, and indigent policy public participation.

– Electricity Prepaid Meters: The metro has a prepaid meter distribution strategy. All registered indigent households will be furnished with a prepaid electricity meter and all other conventional meters will be converted to prepaid meters in the future.

“Prepaid meters also allow the city to collect payment from consumers for arrear debt by deducting 60% of purchases for arrear debt owed to the municipality. This is in line with the approved credit control policy of the city which went out on public participation. The process to convert electricity meters to prepaid was approved by the council,” Sutton stated.

– Water Meters: Water consumption estimations make up the largest contributor to estimated consumption. The metro said that it is investigating various options to control flow and reduce over-consumption and ensure online readings are taken.

– Indigent Households: “The indigent policy makes provision for persons who qualify for free basic services and that any service they consume over and above the free basic services they remain liable for and must pay, irrespective of the fact that they are registered as an indigent.

“A lie that has been created by many is that indigent households qualify for free services. There is no such thing as free services. Only a certain portion of the services is free as per the policy stipulation,” Sutton said.

According to the metro, indigent individuals have consumed R1.1-billion above the free basic service they qualify for over the past two years.

The metro said that it intends to collect this money and households that cannot pay can apply to the affordability assessment committee for a partial or full write-off of the outstanding debt.

“But there will be no blanket write-off of debt.

“Indigent households get free basic services, and they must not consume more they can’t afford to pay for it.

“In cases where there are other occupants in a house who do earn income, or where living units in the back of a property, or rooms in a house are rented out and rental income paid to the owner, those additional services consumed by the tenants or occupants must be paid for.”

Sutton said that an inspection will be made into the consumption and circumstances before the affordability assessment committee decides on a debt write-off.

– Indigent Policy Public Participation: The Department of Social Development is said to be in the process of updating the indigent policy and it will be going out on public participation through the office of the Speaker in due course.

– Flat Rates: The finance MMC said that a flat rate is not in consideration in Tshwane and will not be implemented.

Sutton said that the law determines that people pay for services in the proportion to what they consume.

“This is evident in all aspects of government, for instance in the sliding scale of taxes. One cannot sustain a flat rate with unlimited consumption. It will be a recipe for disaster,” Sutton continued.

Lasca said it was not surprised by the metro’s response to its demands.

“There is nothing new in this response. All we see is arrogance, anger, bitterness and a lack of leadership,” said Lasca chairperson, Tshepo Mahlangu.

“There are a lot of contradictions from MMC Sutton. Lasca is going to call the communities to agree on a way forward.

We say the people shall govern in Tshwane, not the DA-led coalition. They have declared war against the residents. We can’t have bullies running our Capital City. We won’t foot the wrong bills incurred through criminal activities. We will protect our households and rates. We won’t allow this coalition government to run our metro to its knees.”

Lasca said it was awaiting a response from Speaker Ndzwanana and other officials as it doesn’t recognise Sutton as mayor or DA caucus leader, merely an MMC of finance.

It accused the metro of showing residents “the middle finger” and vows that none of their households will be disconnected.

“No Lasca household will be disconnected. The will of our people has been undermined and we say enough is enough. We have no choice but to act against these arrogant bullies who believe that they are entitled to our rates and taxes. The people shall govern,” Mahlangu stated.

The civic organisations accused Sutton of running the metro like a “one-man show”, undermining the mayor, city manager, various officials and the Speaker’s Office.

“Pensioners, indigents and unemployed residents of Tshwane had the resolution to pay R300 and we are paying it monthly. We now say all indigents, child-headed households and unemployed residents should pay R150 per month instead of R300.

“We are awaiting for Council Speaker to table a motion during the special council sitting at end of July.”

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