Buffalo City Ratepayers’ Forum chairman Andre Swart has dubbed metro’s incentive to write off part of the debt owed by account holders as “another burden and noose around the necks of the already overburdened ratepayers”.
He said the deal to write off 50% of arrears debt of 120 days or older meant that diligent ratepayers were now subsidising those who either failed or refused to pay their bills.
The scheme was launched by BCM at the end of October last year and ends on June 30 2016. It is open to all consumers, with the exception of government accounts.
Residents received notices in their monthly BCM accounts offering the incentive which, according to the notice, would help those facing “financial difficulties” by allowing them to settle the arrears debt in “an affordable manner” while at the same time receiving a 50% write-off of a portion of the debt.
Border-Kei Chamber of Business executive director Les Holbrook said BCM should be more stringent about debt recovery and not allow account holders to accumulate debt of more than 90 days. “BCM has sent me letters for as little as R17 in arrears for 30 days.
On two occasions I paid my domestic account one day late and got a summons threatening to disconnect me.”
Holbrook said defaulters should be disconnected after 60 days and although residents’ financial circumstances should be taken into account, many who try to benefit from the scheme should be forced to pay. “Is encouraging people to default? In our experience, schemes like this don’t work. Inevitably what happens is that many people who are on the borderline , but many also simply take advantage.”
BCM spokesman Keith Ngesi had not responded to questions at the time of writing.
DA BCM caucus spokesman Lance Weyer said his party had opposed the ANC’s original proposal that account holders just 30 days in arrears should be offered the 50% write-off. “That would have discouraged people from paying because if they didn’t pay one month the next month they would get half off.”
However, he said historical evidence shows that debt due for more than 120 days had little likelihood of being settled and that although the DA had at first had reservations about the scheme, which was approved in May, it eventually supported the decision as a means of recovering at least part of the debt.
He conceded that the scheme was “a slap in the face” to those who paid their accounts in time and in full while those who failed to pay received a discount.
Gonubie resident Bernard Lindstrom was “shattered” to read the notice in his December bill.
“How can a municipality offer an incentive for non-payment? I’d like to suggest to every ratepayer to exceed the 120 days arrears, so that everyone can become eligible for a 50% discount. If this practice is allowed to continue, we’ll only get half the services required – half the maintenance on the electrical network and sewage works, half the potholes repaired and half the refuse removed.
“A good spin-off would be a 50% cut for the councillors.”
The metro urged consumers to visit the enquiries centre at municipal offices or call 086-111-3017 for more information. — barbarah@dispatch.co.za
Debt write-off a ‘slap in face’ to those who pay
He said the deal to write off 50% of arrears debt of 120 days or older meant that diligent ratepayers were now subsidising those who either failed or refused to pay their bills.
The scheme was launched by BCM at the end of October last year and ends on June 30 2016. It is open to all consumers, with the exception of government accounts.
Residents received notices in their monthly BCM accounts offering the incentive which, according to the notice, would help those facing “financial difficulties” by allowing them to settle the arrears debt in “an affordable manner” while at the same time receiving a 50% write-off of a portion of the debt.
Border-Kei Chamber of Business executive director Les Holbrook said BCM should be more stringent about debt recovery and not allow account holders to accumulate debt of more than 90 days. “BCM has sent me letters for as little as R17 in arrears for 30 days.
On two occasions I paid my domestic account one day late and got a summons threatening to disconnect me.”
Holbrook said defaulters should be disconnected after 60 days and although residents’ financial circumstances should be taken into account, many who try to benefit from the scheme should be forced to pay. “Is encouraging people to default? In our experience, schemes like this don’t work. Inevitably what happens is that many people who are on the borderline , but many also simply take advantage.”
BCM spokesman Keith Ngesi had not responded to questions at the time of writing.
DA BCM caucus spokesman Lance Weyer said his party had opposed the ANC’s original proposal that account holders just 30 days in arrears should be offered the 50% write-off. “That would have discouraged people from paying because if they didn’t pay one month the next month they would get half off.”
However, he said historical evidence shows that debt due for more than 120 days had little likelihood of being settled and that although the DA had at first had reservations about the scheme, which was approved in May, it eventually supported the decision as a means of recovering at least part of the debt.
He conceded that the scheme was “a slap in the face” to those who paid their accounts in time and in full while those who failed to pay received a discount.
Gonubie resident Bernard Lindstrom was “shattered” to read the notice in his December bill.
“How can a municipality offer an incentive for non-payment? I’d like to suggest to every ratepayer to exceed the 120 days arrears, so that everyone can become eligible for a 50% discount. If this practice is allowed to continue, we’ll only get half the services required – half the maintenance on the electrical network and sewage works, half the potholes repaired and half the refuse removed.
“A good spin-off would be a 50% cut for the councillors.”
The metro urged consumers to visit the enquiries centre at municipal offices or call 086-111-3017 for more information. — barbarah@dispatch.co.za
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