Over R2m owed to Lekwa Municipality

The Lekwa Local Municipality (LLM) has launched a debt relief incentive scheme (DRIC) in an attempt to recover the R2,2m owed to the municipality.

“The municipality has taken strict debt collection measures due to high levels of unpaid municipal bills, which have significantly impacted its ability to provide essential services,” explained Lubabalo Majenge, communications officer for the LLM.

Majenge said that municipal bills are due on the 15th of each month and any unpaid amounts after the due date could be subject to interest charges and debt collection actions.

Several residents are in danger of receiving calls from debt collectors.

“According to the LLM credit control and debt collection policy, debt collection actions are initiated against any account holder who has not paid their municipal account by the due date,” said Majenge.

Actions that can be taken against non-compliant account holders include disconnection of electricity, restriction of water supply, and legal action through attorneys and debt collectors.

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Actions can be taken after 90 days of non-payment.

Debtors can settle their accounts in multiple ways, including cash payments at the municipal offices, direct bank deposits, EFT’s, third-party collectors and debit order payments.

The debt relief incentive scheme is an ongoing attempt to retrieve funds owed to the municipality.

According to Majenge, applicants can arrange to make monthly payments to the municipality until 50% of their debt has been repaid.

The remaining 50% of the debt will be written off. Debtors have time up until June 30 to apply for the DRIC.

“Should a customer default on the repayment agreement, the municipality reserves the right to terminate the agreement and disconnect services immediately,” concluded Majenge.