Controversy surrounds Tshwane R20bn debt relief scheme

The Tshwane metro’s newly proposed debt relief scheme, which aims to write off R20-billion in outstanding municipal debt, has sparked debate.

The initiative, which includes offering a 70% discount to residents with overdue municipal accounts if they pay off their debts, has drawn sharp criticism from the Freedom Front Plus (FF Plus).

The debt relief proposal comes as a response to the rising number of unpaid municipal bills, which has resulted in a R30-billion debtor’s ledger for the metro.

The metro’s annual budget for expenditure sits at R50-billion, meaning the outstanding debt is equivalent to 60% of the total expenditure budget.

The proposal suggested that R20-billion of this debt should be written off, amounting to 40% of the metro’s entire yearly spending.

FF Plus councillor Peter Meijer viewed the proposal as fundamentally unfair to those residents who have consistently paid their bills.

Meijer said by forgiving the debt for defaulters and offering a 70% discount to those who settle their overdue accounts, loyal payers are being punished while non-payers are rewarded.

He believes that this sends a wrong message and could lead to a culture of non-payment becoming entrenched in the community.

Meijer expressed his concerns about the debt write-off proposal, stating that it not only undermines the sense of responsibility for paying municipal bills but also opens the door for future abuses.

“The debt relief scheme effectively rewards poor payers and punishes those who have been diligently keeping up with their payments.

What is just as shocking is that councillors’ and officials’ overdue municipal debt amounts to R18-million.

“An ANC councillor who is overdue with just under R1-million now qualifies to have R500 000 in outstanding debt written off.”

He said this undermines the Municipal Structures, which stipulate that councillors and officials within the demarcated areas of the metro should not be more than three months behind on their municipal accounts.

“We are calling for the strict enforcement of this law, and public officials should be held to higher standards when it comes to municipal responsibilities.

“The Mayoral Committee also recommended granting amnesty to those who have engaged in illegal connections to the electricity grid.”

He said the proposal offers defaulters a 30-day window to legalise their connections by installing new power meters.

According to Meijer, this type of concession only encourages unlawful behaviour, as it sends a message that future offences will also be pardoned.

He said the FF Plus can’t support this proposal as it undermines accountability and fairness principles, particularly for residents who have made an effort to stay current on their municipal payments.

Former Finance MMC, Jacqui Uys said the programme primarily benefits those who could pay their accounts but chose not to.

“[Deceased estates] are still required to pay off two years of their debt before it is written off.

“This does not help someone who has inherited an RDP house in the township and can’t afford it because their parents died,” said Uys.

Deputy Mayor Eugene Modise encouraged residents to grab this debt-relief scheme opportunity to avoid disconnection.

He said the metro recognised that illegal connections are not always done out of malice but often due to the rising cost of living for residents.

Modise said the metro has disconnections more than 66 448 households since October last year, which indicates that residents are struggling to pay for their utilities.

“Customers who have tampered with their meters are invited to come forward and declare at our customer care centres or electricity department.

“Thereafter, they will be issued a form to complete the request for normalisation of the meter and be exempted from paying a tamper fee,” said Modise.

Modise said the amnesty ends on March 31.

“Customers are encouraged to take up this offer to bring their municipal accounts up to date, by visiting their nearest municipal office or sending their settlement request to creditcontrol@tshwane.gov.za or debtcollection@tshwane.gov.za.”

He said that voluntarily reporting tampering with electricity meters would qualify for a tamper fee waiver, provided they agree to the installation of a new meter and protective device.

“Any other outstanding debt will be handled according to city credit control and debt collection policy.

“Taking up this offer provides an opportunity to be a good citizen.”

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