Joburg approves improved debt rehab programme for ratepayers

The City of Johannesburg’s 23rd Extra-Ordinary Council on April 26 approved an improved Debt Rehabilitation Programme that includes additional debt relief measures for ratepayers amidst the ongoing Covid-19 pandemic.

The new relief measures contained in the Debt Rehabilitation Programme Policy include an increase of the qualifying property value from R600 000 to R1.5-million, following calls from residents to review the terms and conditions of the initial relief programme, which was first launched in 2019.

The programme, aimed at affording amnesty to property owners whose municipal accounts are in arrears, is set to come into effect from May 1 when they can apply for the relief programme.

Residents have until July 31 to apply to be part of the debt rehabilitation programme.

The programme’s new relief measures have also been extended to benefit small businesses, places of worship and NPOs with a gross revenue income of not more than R3-m.

MMC for finance Councillor Jolidee Matongo explained that the improved programme will see qualifying ratepayers receive immediate relief through a 50 per cent debt write off with a further write–off on the outstanding debt over three years for those who comply with the conditions of the relief programme.

The primary conditions are that ratepayers keep their current municipal accounts updated by paying on time and paying the agreed amounts as well as allow for regular inspection of metered services and the installation of smart meters where required.

“The revamped Debt Rehabilitation Programme, which grants amnesty for accounts in arrears, is available for a limited period. The City, therefore, encourages qualifying residents and entities, who have been financially strained particularly as a result of the Covid-19 pandemic, to take up the offered relief to update their municipal accounts,” he said.

Matongo added: “The main condition of the relief programme is for property owners who have been assisted through the programme to update their municipal accounts to remain compliant throughout the term of their respective agreements with the City.”

Additional write-offs where the monthly gross income from all activities from the residential account holder is more than R22 000, a write-off will be offered on condition that the account holder settles the account in full as follows:

• Monthly gross income from all activities of between R22 001 to R30 000 – 30 per cent write-off of the debt above 90 days shall be offered; all interest and penalty charges will be reversed.

• Monthly gross income from all activities of between R30 001 to R40 000 – 20 per cent write-off of the debt above 90 days will be offered; all interest and penalty charges will be reversed.

• Monthly gross income from all activities of between R40 001 to R50 000 – 10 per cent write-off of the debt above 90 days will be offered; all interest and penalty charges will be reversed

• Above R50 000 –all charges, like disconnection fees and interest, will be reversed.

For more information on the revamped Debt Rehabilitation Programme, ratepayers can download the council-approved report from the City’s website, www.joburg.org.za or visit the nearest municipal customer service centre.