Families owing the council monies for deceased properties have been thrown a lifeline.
eThekwini Municipality on Thursday announced plans to write off debts of deceased and insolvent properties to the vale of R1 million and that are over 24 months.
eThekwini Mayor, Cyril Xaba, described the bold move as a step in the right direction to provide relief for indigent households and to improve the City's revenue collection.
The unprecedented move was adopted by the City's council and was in line with the Municipal Financial Management Act as well as the eThekwini Municipality Credit Control and Debt Collection Policy.
“Currently, the debt owed by the deceased estates where the executors were not appointed is estimated at over R900 million. However, the Council resolved to limit the debt relief package to properties with the value not exceeding R1m," the City explained in a statement.
It added that the Council further resolved that the ruling will apply to deceased and insolvent estates for residential houses and not businesses, debt involved must be older than 24 months and that a surviving beneficiary with a legal title to represent the estate must be available to avoid the re-emergence of debt.
“In instances where the next of kin is a minor or indigent, the Council approved that the Indigent Policy will be applied,” the City said.
Xaba said the decision would allow those occupying the property with the legal title to come forward and make the necessary payment arrangements.
“As a result of this decision, the municipality is of the view that it will bring a sigh of relief to many struggling families, some have had to connect to our services illegally, occasioning further losses to the City and opening themselves to criminal prosecution,” Xaba said.
The mayor urged beneficiaries or next of kin of deceased estates to take advantage of this opportunity by approaching the municipality and make payment arrangements.
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