MMC Funzela Ngobeni answers your questions on the upcoming Debt Rehabilitation Programme
What is the debt write-off report approved in council on 13 June 2019?
It is a report for the once-off debt write-off for the rehabilitation of defaulting residential debtors.
What does the report aim to do?
The purpose of the write-off is to rehabilitate defaulting customers and bring them back into good standing on their city accounts.
Despite strict enforcement of the credit control policy, the City is faced with a signiﬁcant amount of outstanding debt and the continuous defaulting by certain consumers who cannot afford to pay for services.
How does it work?
The objective is to write off 50% of capital debt and 100% sundry interest upon submission of all required documentation including proof of employment; address and correct contact information.
The other 50% will be written off incrementally over a period of three years. This will be
- Customers keeping to their agreements to pay their current municipal accounts;
- Customers allowing for routine water and electricity meter inspections;
- Customers allowing access to city meter readers;
- and where applicable allow for the installation of a smart electricity prepaid, or the normalisation of a current prepaid.
When will this take place?
In September 2019.
How will the City engage Customers?
The City will embark on regional road shows during the month of August.
The following criteria determine qualiﬁcation:
- Write-off is only applicable to residential account holders and;
- The account holders account balance is in arrears for more than 90 days as at 30 June 2019;
- The combined gross income from all activities of the account holder/s and spouse must be between R4 750 and R22 000 per month and;
- The market value of the property and all properties owned by the applicant must not exceed R600 000.00
No.Qualifying criteria Write-off action:
- Current account must be kept update to date.
- Annual debt write off in terms of the balance owing for the next three ﬁnancial years (50% remaining balance);
- Customer must consistently vend;
- Customer must allow access to property as and when required;
- Update details when as and when these change.