EThekwini mayor Mxolisi Kaunda wearing a blue suit EThekwini mayor Mxolisi Kaunda. File Picture: Leon Lestrade
Durban - Ratepayers struggling with their municipal bills can enter into a debt relief programme with the eThekwini Municipality.
The programme allows for the settlement of the outstanding debt over a maximum period of 36 months.
Last week, the council approved a three-month debt relief programme, which starts on Tuesday, for customers who are in arrears for more than 90 days.
Mayor Mxolisi Kaunda said the arrangement was to cushion consumers who were finding it difficult to meet their monthly financial obligations.
“This is a concerted effort by the municipality to assist cash strapped customers and non-profit organisations (NPO’s), including old age homes, Creches, churches and businesses,” said Kaunda.
This programme comes with specific conditions. It will exclude government and parastatals and will focus on assisting individuals, non-profit organisations and businesses experiencing financial distress.
Under this programme, eligible residents can make a payment arrangement with a down payment requirement of 5% for residential customers and 10% for non-residential customers, excluding government departments and state-owned institutions.
A notable feature of this programme, he said, was the scrapping of accumulated interest once a payment arrangement had been made.
But the city warned those taking part to keep their accounts up to date in the context of the relied programme. “The debt relief programme is subject to customers not falling into arrears for a 12-month period after settling the outstanding amounts. There will be a re-instatement of interest and/or capital in the event of default on the payment arrangement.
Kaunda said: “NPOs, including Old Age and People With Disabilities Homes, Mental Hospitals, Early Childhood Development Centres, and others, will be granted a substantial 50% capital debt write-off once they enter into a payment arrangement. This benefit is conditional on these organisations not falling into arrears within a period of 12 months after settling their debts.”
He said to address challenges that were consistently being raised by residents of incorrect bills, the city would be embarking on roadshows in shopping malls and community halls, where residents would be able to raise these challenges with the city officials, and be addressed on the spot.
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