Water debt amnesty to bring relief

The OR Tambo District Municipality has written off almost R300-million owed by residents, churches and non-government organisations for water. 

The write-off forms part of the district municipality’s water debt amnesty, aimed at encouraging ratepayers to service their debts.

The overall debt is R457-million and of that amount, households and NGOs were the biggest culprits, owing a staggering R392-million. Businesses owed R50.6-million.

But as part of the deal, those owing have to pay half of their remaining debt on signing the debt amnesty agreement – with the outstanding amount payable between six and nine months.

As part of the deal, better-paying ratepayers would be granted a further 5% discount on their water bills for the following six months if they paid their accounts before the due date.

But defaulting government departments were not so lucky as no amnesty was granted to them for the R14-million they owe the municipality.

The amnesty was welcomed by the Mthatha Ratepayers’ and Residents’ Association (MRRA) and the OR Tambo District Chamber of Business.

The amnesty was announced by mayor Nomakhosazana Meth at a press conference in Mthatha yesterday, who said the debt amnesty was not to reward non-payment but to motivate consumers to settle their accounts.

It comes after the district council was served with a lawyer’s letter by the national Department of Water Affairs and Sanitation last month, demanding a payment of R76-million or facing possible dissolution over the debt.

Meth said yesterday the council had resolved last month to slash the household, churches and NGO debts by 70%, while businesses would have to pay 50% of their debts.

However, if debtors failed to comply with the terms of the agreement the amnesty would fall away, Meth cautioned.

MRRA spokesman Madyibi Ngxekana said while they appreciated the steps taken by the district, they wanted to see the details of the offer.

OR Tambo District Chamber of Business president Vuyisile Ntlabati said: “Some businesses might be in distress and struggling to even pay salaries. But we have always said everybody who can pay, must pay. We welcome the debt amnesty.”

Meth said those who were not indigent should foot the bill for municipal services.

“But at the same time, we have a responsibility to take action when we see other debts are irrecoverable and write them off,” she said.

Asked if the non-payment was due to the rates boycott by residents and businesses or if they were under financial pressure and unable to pay, Meth said during consultations with ratepayers the issue of inconsistent municipal services had been raised sharply as a possible reason.

“We are spending billions to ensure that at least we upgrade the infrastructure to ensure sustainable and consistent supply of services,” Meth said.

Regarding the R176-million owed to the Water and Sanitation Department, Meth said they would meet with Minister Nomvula Mokonyane in the hope that they could persuade her to write off the debt.