Municipal debt relief for deceased and insolvent estates

TO PROVIDE financial relief to beneficiaries of deceased and insolvent estates, the eThekwini Municipality council has approved a motion to write off debts on properties valued at up to R1 million that have been in arrears for more than 24 months.

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This decision was adopted during the council meeting on August 29, with mayor Cyril Xaba stating that the move aligns with the Municipal Financial Management Act and the eThekwini Municipality Credit Control and Debt Collection Policy.

“Currently, the debt owed by deceased estates where executors were not appointed is estimated at over R900 million. However, the council has decided to limit the debt relief to properties valued at no more than R1 million,” Xaba explained.

The council outlined specific conditions for the write-off. It applies solely to residential households, not businesses, and the outstanding debt must be older than 24 months. Additionally, there must be a surviving beneficiary with legal title to represent the estate, ensuring that further debt does not accumulate.

For cases where the next of kin is a minor or considered indigent, the municipality’s indigent policy will be applied.

“This initiative allows those legally entitled to the property to come forward and arrange payments with the City. The municipality believes this decision will provide much-needed relief to many struggling families. Some have resorted to illegal connections to our services, which not only leads to further financial loss for the City but also exposes them to potential criminal charges,” Xaba noted.

He urged beneficiaries and next of kin of deceased estates to take advantage of this opportunity by contacting the municipality to make payment arrangements.

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