City of uMhlathuze bank account closure: residents urged to check payment details

Following its changeover a year ago, the City of uMhlathuze has warned ratepayers that its old bank account will be officially closed as of next month.

Announcing the switch to FNB in 2023, the municipality said it would keep its old Absa account open for at least a year to allow ratepayers to familiarise themselves with the move.

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The municipality said last week that several ratepayers are, however, still making payments into the old account.

“The City of uMhlathuze has observed that some clients still pay for rates and other municipal services using the old Absa bank account.

“All transactions to the Absa account will be reversed and considered as non-payment as of 28 February 2025. As a result, the impacted accounts will be subject to credit control actions,” the city stated.

Announcing its decision in 2023 to change from Absa to FNB, the municipality said it was the first time it was changing its bankers since its establishment.

Highlighting reasons for the switch, uMhlathuze Municipality CFO Mxolisi Kunene said this is mandated by law.

“When the Municipal Finance Management Act (MFMA) and its regulations came into being, there is a section of law that says you must change banks every five years.

“We embarked on this process quite a while ago; it is regulated and not a choice,” said Kunene.

Residents are, however, urged to be vigilant as some may prey on this change and send out incorrect banking details.

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