City of Tshwane deputy mayor Eugene Modise has introduced a debt-relief programme aimed at helping residents, businesses, indigent households, and deceased estates settle their outstanding municipal accounts.
The initiative, which began this month and is set to run until June 2025, seeks to improve revenue collection and address the city’s growing financial challenges.
Modise emphasised the urgency of the programme, highlighting the municipality’s financial struggles due to unpaid bills.
Collection rate below threshold
“The National Treasury has set a threshold for revenue collection at 95%. And Tshwane’s collection rate is hovering at around 90%.
“Various municipal customers, including government departments, big business and residential customers, owe Tshwane a cumulative R30-billion. This amount is staggering and impedes effective service delivery,” said Modise.
Part of the initiative is targeted at those who have tampered with electricity meters. This is a practice commonly referred to as illegal connections.
Modise said customers who voluntarily report such tampering will have their tamper fees waived. This provided they agree to install a new meter and a protective device.
However, this amnesty period will only be available until March 31 2025.
He explained that the programme includes several measures to assist residential customers.
Special 70% write-off
Those who settle 12 months of municipal debt in full will receive a 70% write-off on any outstanding debt. That will be on debt that is older than 12 months.
To qualify, they must also agree to a structured payment plan for the remaining 30% of the principal debt. The process will be following the city’s credit control and debt collection policy.
Customers with debt that is less than 12 months old must settle the principal debt in full. This will qualify them for a 100% interest write-off.
In an effort to reward customers who consistently keep their accounts up to date, the city is also offering a 25% discount on entry fees to City-owned recreational facilities. These include the Rietvlei Nature Reserve, community halls, and swimming pools.
Customers can take advantage of this benefit by presenting their latest municipal account statement.
Offer for businesses
“The scheme also accommodates businesses through its short-term and long-term business incentive. Businesses that pay off three years of municipal debt in full, in a single payment, will receive a 100% debt write-off on any outstanding debt older than three years.
“Businesses that owe the city for less than three years and can manage to pay the principal debt in full, will qualify for a 100% interest write-off. Additionally, miscellaneous charges such as final demand and disconnecting notices will be waived,” said Modise.
He said the initiative extends special consideration to vulnerable groups. Indigent customers and child-headed households will have their debts written off entirely.
However, they will remain responsible for any usage that exceeds the allocated subsidy. These refer to subsidies of 100kWh of electricity and 12kl of water.
Deceased estates
Deceased estates are also accommodated under the programme. These estates must settle all municipal debt accumulated within the past two years in full. After which the city will write off any outstanding debt older than two years.
He highlighted that to qualify, necessary documentation must be submitted to the Deceased Estate section for approval.
Modise announced that in addition to the debt-relief programme, Tshwane has completed a re-evaluation of properties for the purpose of levying property rates.
The updated property valuations have been made available for public inspection. These will determine new tariffs effective from July 1 2025.
In line with the Local Government: Municipal Property Rates Act, the city has invited property owners to review their valuations. They can lodge objections if they believe the assessed values do not accurately reflect the market value as of 1 July 2024.
The objection period will remain open until May 2. And forms can be accessed on the City of Tshwane website.
