As part of recovering a whopping R25,69 billion in unpaid municipal debt, the City of Tshwane has extended the deadline for its incentive debt-relief scheme to May 31.
This comes after the municipality made inroads in terms of reducing its debtors’ book from almost R30bn to R25,69 bn since implementing the debt relief programme in February.
A council-approved report in February, offers residents struggling with municipal debt a chance to have up to R10 billion in debt canceled should they take advantage of a debt-relief programme meant to assist them to bring their municipal accounts up to date.
Deputy Executive Mayor and MMC for Finance, Eugene Modise, said the decision to extend the initial March 31 deadline to May 31 was made during a special council sitting on Thursday, in response to requests from residents and businesses seeking more time to take advantage of the offer.
He said the extension will give struggling households and businesses more time to settle outstanding municipal accounts.
The February council report highlights the significant debt owed to municipal services, with residential customers accounting for R15.833 billion and business customers owing R6.746 billion.
Modise said: “This extension will go a long way to alleviating the financial pressures on hard-pressed households and businesses across Tshwane. In doing so, this will also greatly assist the City to meet its debt obligations and put the City on better financial footing.”
He stressed that optimising revenue collection is a key priority of the multiparty coalition’s agenda which assisted in achieving the funded budget.
“To date the City's total debt stands at R25.69 billion, reflecting a commendable 13.19% reduction compared to the previous month,” he said.
He said an impressive R2,42bn has been written off from registered indigent accounts, offering significant financial support to those most in need.
“We have also written off R1,83bn from over 31,500 inactive accounts, allowing for a smoother path to debt recovery,” he said.
He highlighted the success of the debt relief scheme, which received over 10,200 applications in its previous implementation, adding that with the latest extension the City expects more applications.
“As part of the extension, we are pleased to announce the waiver of the standard R29,000 tamper fee. This will enable customers to regularise their use of city services without incurring further penalties, alleviating some of the financial burdens they face,” Modise said.
The extension of the amnesty period is expected to create a more supportive environment for Tshwane's residents and businesses, encouraging proactive engagement during the challenging economic climate.
Modise said: “We appreciate the volunteerism and honesty displayed by the residents and truly appreciate the demonstration of love for the City and the determination to pay for their service, which will result in the City’s financial stability.”