The Msunduzi Municipality is grappling with ballooning consumer debt with the latest figures showing it’s owed R7.6 billion by its customers.
The Midlands municipality detailed the extent of its debt problem last week during a meeting with the national portfolio committee on Cooperative Governance and Traditional Affairs (Cogta).
The committee was visiting municipalities in the province to assess their state and performance.
In the case of Msunduzi, the committee was informed that the City had made significant strides since being placed under administration, with provincial Cogta revealing that the municipality had addressed all the challenges that led to its previous status.
The municipality briefed the members of the portfolio committee on its finances, including the debt to Umngeni-UThukela Water as well as Eskom. It has entered into a payment arrangement with these two parties.
According to the municipality’s debt report, of the R7.6 bn owed, R1.1 bn is owed by businesses, R228 million by the government, R5.9 bn by residents, and R286 million by others.
The municipality has undertaken aggressive collection measures, including Operation Qoqimali, which targets those in arrears and disconnects their services, along with regular service disconnections.
The municipality has also been auditing meters throughout the City and not approving building plans for those that owe.
Msunduzi mayor Mzimkhulu Thebolla told “The Mercury” that the city owed Umngeni-UThukela Water close to R500 million and was paying R75 million each month towards this debt.
Asked about the Eskom debt, the mayor was not able to give the total amount but said in terms of the payment arrangement they were paying between R180 million and R200 million each month to the power utility.
The mayor urged communities to make payment plans to pay the debt owed.
“On average, we are now collecting more than 100%, which means that even those who owe older debts are paying.
“We have an indigent policy where those who cannot afford our services should come forward, and we urge those who have tampered with our infrastructure to do the same so that we can also change those meters.”
ACDP councillor Rienus Niemand expressed concern, stating that the party believed the city owed Eskom more than R1 bn and Umngeni-UThukela Water around R600 million.
He highlighted the alarming level of theft of water and electricity, noting that out of 40 000 prepaid electricity meters, 25 000 have been compromised.
“The situation has never been worse. Our cash coverage is almost non-existent, with debtors at an all-time record of R7 billion. Msunduzi's aspirations to become a metro while taking on dysfunctional municipalities are nonsensical,” he added.
The ACDP demanded that the MEC review the decision to change the intervention in Msunduzi from an administrator-led process to the current situation where they received financial guidance and support.
He said there needed to be compulsory national treasury intervention in the interest of good governance for the residents of Msunduzi. Addressing the portfolio committee meeting last week, Cogta MEC Thulasizwe Buthelezi praised the council for its efforts in turning around the municipality with the department’s support.
“The leadership shown by the council is commendable. Their commitment to improving governance and service delivery is evident.”
The Mercury