The Buffalo City Metro council yesterday approved the write-off of R272.7-million worth of “bad debt”.
The debt is for rates and services accounts classified as “irrecoverable” even after the metro used its credit control and debt collection processes.
The amount includes a list of rates and services debt to be written off for indigent debtors, a list of interest charges related to rates and services, a proposed list of uncollectable debt, a proposed list of indigent deceased debtors and the proposed list of amounts less that R150.
While the ANC councillors sang their own praises yesterday saying this was “service delivery to the people” the DA was not impressed, highlighting flaws in the report.
The flaws included the listing of ratepayers the party claimed should not be part of the lists as “they can afford to pay rates”.
DA councillor Sue Bentley said she could not understand how an ex-mayor and member of the provincial legislature could be on the write-off lists.
She said it was also strange how her neighbour, who lived in the up-market suburb of Bonnie Doon, was also on the list.
The report, tabled by acting city manager Bob Naidoo, stated there were 24258 indigent debtors whose debt amounted to R139.3-million.
The balance was made up of “aged” interest charges related to rates and services; uncollectable debt in water, electricity, refuse, fire levy, sundries, sewage and rates deemed irrecoverable; the debt of indigent deceased debtors; and “small amounts less than R150”. The amounts were broken down into:
- R11.3-million for electricity;
- R17.4-million for rates;
- R26.3 million for refuse;
- R18.4-million for sewerage;
- R96.9-million for “sundries”; and
- R102-million for water.
“The DA has no problem with the writing off of indigent accounts but the fact that there are businesses that are still operating but their accounts will be written off is our concern. We are talking about millions of rands here,” said DA councillor Roy Anglebeck.
Finance portfolio head councillor Nontsikelelo Peter, however, said that some businesses had closed and could not be found by the department.
“If we don’t write off these amounts we will always have irregular expenditure,” she said.
Ward 25 councillor Krosby Kolela said while he appreciated the report, he criticised the metro’s “poor billing system”.
“I have been to a shack and I don’t understand how a one-room shack can have a bill of R485000.
“How did that happen? Our billing system is poor and we have to correct it.
“Some people are civil servants in these lists. We don’t want this to benefit people it is not supposed to benefit,” Kolela said.
It was resolved that if councillors knew people who were “illegally” on the lists they should come forward with the information in order to reverse the write-offs. — mamelag@dispatch.co.za
BCM writes off R272.7m debt
The debt is for rates and services accounts classified as “irrecoverable” even after the metro used its credit control and debt collection processes.
The amount includes a list of rates and services debt to be written off for indigent debtors, a list of interest charges related to rates and services, a proposed list of uncollectable debt, a proposed list of indigent deceased debtors and the proposed list of amounts less that R150.
While the ANC councillors sang their own praises yesterday saying this was “service delivery to the people” the DA was not impressed, highlighting flaws in the report.
The flaws included the listing of ratepayers the party claimed should not be part of the lists as “they can afford to pay rates”.
DA councillor Sue Bentley said she could not understand how an ex-mayor and member of the provincial legislature could be on the write-off lists.
She said it was also strange how her neighbour, who lived in the up-market suburb of Bonnie Doon, was also on the list.
The report, tabled by acting city manager Bob Naidoo, stated there were 24258 indigent debtors whose debt amounted to R139.3-million.
The balance was made up of “aged” interest charges related to rates and services; uncollectable debt in water, electricity, refuse, fire levy, sundries, sewage and rates deemed irrecoverable; the debt of indigent deceased debtors; and “small amounts less than R150”. The amounts were broken down into:
“The DA has no problem with the writing off of indigent accounts but the fact that there are businesses that are still operating but their accounts will be written off is our concern. We are talking about millions of rands here,” said DA councillor Roy Anglebeck.
Finance portfolio head councillor Nontsikelelo Peter, however, said that some businesses had closed and could not be found by the department.
“If we don’t write off these amounts we will always have irregular expenditure,” she said.
Ward 25 councillor Krosby Kolela said while he appreciated the report, he criticised the metro’s “poor billing system”.
“I have been to a shack and I don’t understand how a one-room shack can have a bill of R485000.
“How did that happen? Our billing system is poor and we have to correct it.
“Some people are civil servants in these lists. We don’t want this to benefit people it is not supposed to benefit,” Kolela said.
It was resolved that if councillors knew people who were “illegally” on the lists they should come forward with the information in order to reverse the write-offs. — mamelag@dispatch.co.za
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