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Crackdown on defaulting businesses and govt depts in Polokwane

Polokwane mayor John Mpe says they must take decisive action against non-paying entities, particularly businesses and government departments.

POLOKWANE – The Polokwane Municipality is set to implement a rigorous revenue enhancement programme aimed at recovering outstanding debt from businesses and government departments. This decision comes on the heels of a recent strategic planning session.

On September 30, debtors owed the municipality R2.078b, of which R287.099m was due by organs of state, R484.403m by commercial customers and R1.326b by households.

In a media release, Mayor John Mpe stressed the importance of prioritising revenue protection and financial sustainability.

He stressed that the municipality must take decisive action against non-paying entities, particularly businesses and government departments.

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“A significant portion of the money owed to the municipality is held by these entities. We will not hesitate to implement measures such as service disconnections if they fail to fulfil their payment obligations,” Mpe said.

Mpe also highlighted the need for a fearless and impartial approach to revenue collection.

“We must enforce these measures without fear or favour, ensuring that all entities, regardless of their size or influence, are held accountable,” he stated.

In appreciation of those who continue to pay their municipal services, he said there is a need for creative incentives to reward their commitment. “We must come up with innovative ways to encourage timely payments and recognise those who consistently fulfil their obligations.”

The municipality has also acknowledged the need for open communication with residents.

“We must be transparent with our communities and inform them that their timely payment of municipal services is crucial for us to deliver on our service commitments,” Mpe added and explained that a relaxed revenue collection approach threatens the financial sustainability of the municipality.

“By taking decisive action against non-paying entities, the municipality aims to secure its financial future and ensure the continued delivery of essential services to its residents,” Mpe concluded.

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