Municipality responds to Gera debt write-off

2017-09-13 06:01

AT a meeting last Sunday, August 27, communities under the Greater Edendale Residence Association (Gera) resolved to protest if their demands to have their water and rates debt written off are not met by the Msunduzi Municipality.

This is according to the association chairperson, Mr Z.M. Hlatshwayo.

The Echo ran the story about this last week under the headline “Residents ready to strike over debt”, however, the municipality had not responded to an inquiry by Echo at the time of going to print.

Municipality spokesperson, Thobeka Mafumbatha, said in a response received after Echo’s previous deadline: “Customers for Edendale are like all other customers where you will find some paying and some paying less and some not paying at all. The money for service delivery is not split according to how it is paid per area.”

She said failure by residents to pay for such services negatively affects the delivery of these services because the rendering of services by the municipality is based on the projected revenue collected from all municipality customers, not only those from a specific area.

“The decision to write off services is in terms of the write-off policy which applies across the board, not to specific areas. The decision of writing off the debt is based on the council debt write off policy, which has its criteria to be followed and is available on the [municipality’s] website,” she said.

Mafumbatha said the provision to write off bad debts is a common accounting standard, which results in a loss for any business.

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