Households, businesses owes municipality millions

2015-08-13 06:00

CONSUMERS across the region owe the Kouga Municipality a staggering R115 794 million.

Of this, an amount of R86 458 million has been outstanding for over 90 days.

According to the agenda of the special council meeting held on August 3, households are in arrears with R104 215 million, while businesses and organs of the state are in debt with R10 421 million and R1 158 million respectively as at the end of June.

Monies owed to the municipality by residents include payments for water, electricity, sewerage, property rates and environmental management fee.

According to the agenda, an amount of R31 666 million was used to subsidise the municipal accounts of 7 462 registered indigent households in the area, while R6 787 million was used to write off any outstanding debts from their accounts.

According to municipal spokesperson, Laura-Leigh Randall, monies owed are for rates and services including water, electricity, sanitation and refuse removal.

“The main method of collection is cutting electricity to households that are in debt. This basically forces the debtor to come to the municipality to make an arrangement to pay the outstanding monies,” says Randall.

“The budget makes allowance for bad debt, therefore the annual targets can still be met. The municipality would be able to set higher targets and improve, maintain and expand basic service delivery, if all households paid their monthly accounts,” says Randall

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