King Cetshwayo District Municipality said they are faced with steadily climbing debt from both government and domestic clients; they have resolved to take a tough stance to recover outstanding debt.
The municipality said they have outstanding debt of over R8 million from government entities which include hospitals, education institutions and other state-owned buildings, with the debt mainly relating to water and sewerage charges.
The municipality added that in terms of the credit control and debt collection by-laws the municipality is required to institute actions to recover outstanding municipal debts from consumers such as water restrictions and penalty fees.
Acting district Mayor, Skhumbuzo Dlamini said that long outstanding debts had a negative impact on the cash flow of the municipality, and could eventually lead to it becoming unsustainable. “We need to revive the culture of payment for services, and to encourage our citizens and government clients to pay their long-standing debt, some of which extends to over 90 days.”
Dlamini added that non-payment affects the municipal revenue, which in turn affected its ability to maintain high levels of infrastructure and maintenance programmes and ultimately service delivery. “The district will therefore be strictly enforcing its credit control policy and defaulters could be liable for fines and/or restrictions on services.”
Dlamini said that consumers are urged to meet their payment obligations to avoid penalties or other punitive measures.
“In addition, should you be affected by the Post office challenges, please update your details with the municipality for other statement delivery options. Those with financial challenges are encouraged to approach the municipal revenue offices to take advantage of the proactive policies to assist customers who are defaulting.”
The Mercury