Tshwane's debt relief plan under fire for neglecting vulnerable residents

A Tshwane council ordinary sitting. Picture: Jacques Naude / Independent Newspapers

A Tshwane council ordinary sitting. Picture: Jacques Naude / Independent Newspapers

Published Nov 5, 2024

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A Tshwane council-approved report wiping out R32.5 million in unpaid municipal bills for 259 households has come under fire from the Lotus Gardens, Atteridgeville and Saulsville Civic Associations (Lasca).

The civic organisation claimed the relief plan neglected the most vulnerable residents, including indigent and child-headed families.

Lasca leader Tshepo Mahlangu demanded a write-off report specifically for the indigent groups, stating that the current report excludes those who need it most.

Mahlangu, who has previously led marches protesting against allegedly inflated and inaccurate municipal bills, said the City of Tshwane relies on flawed debt calculations, estimating bills instead of providing accurate readings

He said: “We demand a write off report for indigents, child-headed households and deceased estate households.”

According to him, the recent report excluded the most vulnerable and needy customers and was “another attempt by officials to make residents commit to arrangements on estimated bills”.

“The City of Tshwane Municipality relies on a fabricated debtors’ book that is based on estimations. We won't allow Finance Department officials to present the wrong template to the newly appointed administration and council. We won't fold our hands while our elders are given wrong information,”he said

The written-off debt benefited households that applied to the city's affordability assessment committee, which evaluated household income and amounts owed.

Mahlangu said the report prioritised those who made arrangements on estimated bills, potentially allowing corrupt officials to exploit the system.

He said the affordability assessment committee’s report was for customers “who made arrangements on estimated bills and if we are not careful on such reports, we risk being played by corrupt officials who manipulate the system in order to enrich themselves”.

According to the committee, the outstanding debts to the City were cancelled after it was concluded that they were irrecoverable in the long run.

The City's debtors' book stands at R23 billion, unchanged since the Covid-19 pandemic.

Reacting to the report, EFF councillor Ngoako Seanego said: “By approving this write-off report we affirm our dedication to inclusive and compassionate governance that prioritises the wellbeing of our communities,” he said.

Former DA Finance MMC Jacqui Uys warned against blanket debt write-offs, citing concerns about encouraging default payments and jeopardising the city's financial stability.

“What the administration must not do is a blanket write off of debt for specific areas due to pressure from interest groups, encouraging future default payments, in a costly attempt to win some votes,” she said.

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