R7.8bn increase in eThekwini debt collection; R31.9bn owed
Durban — The eThekwini Municipality’s debt collection report for the months of July and August revealed that more than R31.9 billion (R31 945 174 059) was owed in debt, an increase from over R13.5bn (R13 534 936 202) in 2019/20.
Mayor Cyril Xaba said the debtors’ balance increased from R13.5bn to R31.9bn in five years. Xaba said this was mainly due to water back billing, and that high billing charges have led to delayed payments for services.
City manager Musa Mbhele said the increase in debt could be attributed to the declining state of the economy and rising unemployment; increasing tariffs and property values; dissatisfaction with service delivery and poor indigent support management processes/low number of indigent support take ups.
Various political parties reacted to the R7.8bn increase in debt collection over the 2023/24 financial year.
IFP caucus secretary Dr Jonathan Annipen said the committee now meets twice a month which affords councillors an opportunity to interrogate challenges which may compromise the financial stability and sustainability of the city.
“Since the Revenue Management System (RMS) was introduced in eThekwini in 2016, it has been fraught with technical and material maladies that have disadvantaged the ratepayer. There exists a serious disconnect between the billing system and the valuation roll, and the ongoing free 6kl water saga is a case-in-point,” Annipen said.
Delays between processing invoices and dispatching them often resulted in poor revenue collection, the accumulation of bad debt, unidentifiable underground water leaks, incorrect calculation of charges, the rejection of water-loss insurance claims and unnecessary disputes, he said.
“… Our councillors across the city have cited case studies which allude to the fact that in many cases customers only receive invoices for rates accounts several years after property transfer as opposed to the simultaneous process this ought to be,” Annipen said.
Annipen said customers are willing to pay their dues but are prohibited by spurious bureaucratic stumbling blocks and red tape.
Annipen commended the co-operation between the departments of electricity, water and revenue in the transfer of the meter reading function.
DA councillor Rory Macpherson said collecting R7.8bn was a record for a year. Macpherson said that water services account for 50% of the debt.
“Regular, monthly water and electricity readings are required and this was committed to three years ago. There has to be accountability,” Macpherson said.
EFF councillor Vukani Ndlovu said: “We are hoping that the debtors’ plan proposed by the city manager will be implemented. The EFF proposes that the city improves communications with debtors and that they employ the youth in debt collection – which in turn, creates job opportunities. If we employ volunteers going door to door, it will help the municipality,” Ndlovu said.
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