Durban — The DA in eThekwini has accused the ANC of rejecting its debt relief proposals, saying when it sought an amendment to the scope of the proposed Debt Relief Programme, the ANC-led City blocked it.
This comes after the City committed itself to assisting cash-strapped customers and non-profit organisations (NPOs) including old age homes, churches and other organisations.
The City reinstated its Debt Relief Programme, effective on Sunday.
This came to light at the eThekwini council sitting held at the Durban ICC on Thursday.
DA Executive Committee (Exco) member Councillor Yogis Govender said the proposed amendments consisted of extending the recommendations for debt relief, from three months to six, and dispensing with unaffordable deposits required for credit instalment agreements on consumers’ arrear utility bills.
Addressing the council, Mayor Mxolisi Kaunda said it was important to note that all written-off interest would be reinstated in the event of a customer defaulting on the payment plan.
Kaunda added that recognising that financial recovery may take time, the programme allowed for the settlement of the outstanding debt over a maximum period of 36 months.
Govender said the eThekwini Municipality was in a state of crisis on many fronts with spiralling debt owed to it largely by consumers being one of the concerns.
She said the projected amount owed to the municipality as of August 31, 2024, was R26.97 billion and of that R19.04bn was owed by ordinary households.
Govender added that eThekwini’s tariff hikes and the cost of living had seen thousands of residents unable to pay the exorbitant electricity and water bills generated by the municipality.
She added that the DA’s proposal to have an amnesty of a zero deposit payment plan for people in arrears for their light and water accounts was narrowly defeated by a mere seven votes.
“Consumers are often slapped with bills that they simply cannot pay as the City of eThekwini fails to read meters and sends out estimates. The 25% deposit has been out of reach for the average household.
“R19bn or 74.89% of the total debt owed to eThekwini Municipality is household debt, which is a clear indication that people are in dire straits and that the unrealistic tariff increases have become unaffordable,” Govender stated.
At a time when public outrage was at an all-time high, Govender continued, the ANC clapped gleefully when the DA’s amendment was defeated.
The ANC demonstrated time and again that “it doesn’t care about rates and taxpayers”, but “reaches deep” into City coffers spending millions every month on catering, gifts, artists, performers and venue hire, she said.
ANC Exco member and chair of governance in eThekwini, Nkosenhle Madlala, said: “This programme, previously approved and implemented from December 2022 to February, comes with specific conditions aimed at alleviating the financial burden on the municipality’s valued residents.
“The renewed relief programme reflects the municipality’s commitment to being a caring and liveable city and will be open for a period of three months.”
Madlala added that the reinstated programme would exclude government and parastatals and also focus on assisting individuals and businesses experiencing financial distress. To qualify for this relief, he stated, customers must have outstanding debts for a minimum of 90 days.
Kaunda said: “NPOs, including old age and disabled homes, mental hospitals, Early Childhood Development centres and others, would be granted a substantial 50% capital debt write-off once they enter into a payment arrangement.”
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