Newcastle Municipality's launches aggressive debt collection drive to recover R2.3 billion
The Newcastle Municipality has launched a campaign to collect R2.3 billion in debt owed by ratepayers, businesses and government departments.
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The Newcastle Municipality has launched a major Debt Collection and Revenue Enhancement Drive to recover more than R2.3 billion owed by residents, businesses, and government institutions, a debt burden that has left the municipality facing a monthly shortfall of over R40 million.
The campaign, led by Mayor Xolani Dube together with the Council and municipal officials, began in Wards 20 and 22 in Madadeni Sections 1 and 2.
It forms part of an intensified effort to address what the municipality describes as a “growing culture of non-payment for municipal services,” which has severely impacted service delivery and infrastructure maintenance.
The initiative however comes after some Newcastle residents took to the streets on November 6 raising concerns about their municipal bills.
In their memorandum, the residents said estimated bills was causing “financial hardship, creating unpredictable and often crippling bills that bear no relation to actual consumption.”
The residents also said the electricity tariffs were significantly higher than Eskom direct rates. The memorandum called for an end to estimated billing and for meter readings to be taken.
The residents also called for a flat rate system for property rates.
In a statement, the municipality said it had adopted several measures to strengthen its financial position.
These include the implementation of a water restriction programme, expropriation of vacant and abandoned properties, and the issuance of summonses and letters of demand to defaulting ratepayers.
Quarterly debt collection operations and the installation and replacement of water meters to curb illegal connections and faulty readings, which are also being rolled out.
Mayor Dube appealed to residents to pay their bills for municipal services.
“We appeal to our residents to take responsibility for their municipal accounts and contribute to the growth and development of our city,” he said. “Your payment for services is crucial for us to deliver quality services and maintain our infrastructure.”
To ease the burden on struggling households, the municipality has introduced affordable incentive schemes. These include 50% and 70% payment plans, along with debt write-off options for eligible households, pensioners, and unemployed residents.
Residents can visit the Newcastle Tower Block, Madadeni Section 1 (opposite the police station), Madadeni Section 4 (Madadeni Library), and Osizweni (opposite Boxer) offices for assistance with payment arrangements.
The next leg of the campaign will take place on Wednesday at Phelandaba Sports Ground, where communities from Wards 23, 24, and 26 are encouraged to engage directly with municipal officials.
According to the municipality, the initiative aims to restore a sustainable revenue stream and rebuild a culture of payment as a foundation for reliable service delivery.