Indigent write-offs don’t skew Tshwane metro figures
The municipality says it has managed to keep its bills with Rand Water and Eskom paid up, two accounts which were sources of high debt for the metro in the recent past.
The Tshwane metro is currently celebrating a “record-breaking” revenue collection rate of 98% for the 2024/25 financial year.
However, it has insisted that the R4.3-billion which was written off recently for indigent accounts, did not inflate the above figure and was aligned with responsible governance.
Deputy Mayor and MMC for Finance, Eugene Modise, described the collection rate as a significant step toward financial stability, saying it reflects the commitment of paying residents.
“We are extremely proud to report this level of revenue collection, said Modise.
“It reflects a collective effort between the municipality and residents who continue to meet their obligations, even in challenging economic times.”
The metro collected R40.5-billion in cash revenue against its funding plan target of R41.3-billion, reducing its annual shortfall to R784- million.
Modise confirmed that over R4.25-billion in long-standing municipal debt was written off.
He explained that this was not part of the revenue collection figures and explained that it was defrayed against an existing allowance for doubtful debt, which is a requirement under municipal accounting rules.
“The write-off does not burden paying residents because the metro has an indigent policy.”
Modise said they also receive an equitable share from the national government to subsidise basic services for indigent households.
The metro’s equitable share allocation for 2024/25 stands at R4.3-billion – equivalent to the written-off debt.
He attributed much of the revenue success to an incentive scheme and amnesty programme implemented earlier this year.
“Between March and May, 20 075 customers came forward to normalise tampered or inactive meters.
“In addition, 85 361 residents benefited from a R2.4-billion debt write-off, and over 31 000 dormant accounts amounting to R1.8-billion were cleared.”
According to Modise, the metro also recovered R154-million through settlement agreements with 1 076 customers.
He said the incentive scheme allowed many households and businesses to settle accounts that had been problematic for years.
“It’s encouraging to see how this proactive step brought customers back into the fold and boosted revenue collections,” Modise said.
He also dismissed concerns that amnesty programmes encourage non-payment.
He explained that outstanding accounts are levied interest and subject to credit control measures like electricity disconnections and water restrictions.
“It would not be worthwhile for customers to default in anticipation of an amnesty that the council may not implement again.”
Modise said revenue collection directly supports basic services like water, electricity, sanitation and waste removal.
He noted that the metro’s Rand Water account has been kept current and its Eskom bill is up to date under a settlement arrangement.
However, he acknowledged ongoing challenges with erratic water and electricity supply, attributing many issues to vandalism and theft of critical infrastructure such as transformers.
To prevent future multi-billion rand write-offs, the metro has adopted a mayoral charter on revenue enhancement and financial recovery.
“The credit control campaigns, such as Tshwane Ya Tima, and strict enforcement of debt collection policies will continue.
“Paying for municipal services is a civic duty and a vital contribution to building a prosperous capital city for all,” Modise said.
He urged residents who are struggling financially to approach the municipal offices or use the e-Tshwane platform for payment options.
Modise also warned residents not to pay staff or middlemen for assistance, emphasising that all metro services are free.
ALSO READ: Storm brews as ANC demands Tshwane city manager’s appointment be set aside
Do you have more information about the story?
Please send us an email to bennittb@rekord.co.za or phone us on 083 625 4114.
For free breaking and community news, visit Rekord’s websites: Rekord East
For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok.
