Writing off of debt is legal

2015-10-01 06:00

RECENTLY, the Msunduzi Municipality wrote off a massive debt. The decision to write off so much debt is not one that the municipality took lightly.

Intensive analysis and debates took place in sittings between the senior management of the municipality and the executive committee, to convince the council fully that there were strong reasons for the write-off. Some may then ask that it may have been necessary, but is it legal?

It is. According to Section 113 of the Local Authorities Ordinance, the treasurer may, under the authority of the resolution of the council, write off any revenue which is irrecoverable or the recovery of which is considered not to be reasonably practicable.

It is also in line with Section 27 of the council’s credit-control and debt-collection policy, as well as the national Treasury guidelines. People who want to check if their individual debts have been written off have to be patient as their accounts will not be cleared overnight. Each account will be scrutinised to ensure that only those entitled to benefit from the write-off do so.

I would like to end by thanking the city mayor and council for the lifeline the write-offs are for those who are too poor to pay.



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