Msunduzi to cut off defaulting consumers as it seeks to collect R7 billion debt

Msunduzi Mayor Mzimkhulu Thebolla, has said the municipality will be employing hardball tactics in a bid to get ratepayers to pay their debt. Picture: Msunduzi Municipality

Msunduzi Mayor Mzimkhulu Thebolla, has said the municipality will be employing hardball tactics in a bid to get ratepayers to pay their debt. Picture: Msunduzi Municipality

Published Jan 1, 2025

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Msunduzi Mayor, Mzimkhulu Thebolla, has warned defaulting residents that their access to essential services, such as electricity, will be terminated in the coming year if they do not pay their municipal bills.

Thebolla said this is one of the hardball tactics the municipality has already begun to implement, and it will be ramped up as they seek to manage runaway consumer debt that currently stands at R7 billion.

Speaking to The Mercury recently about the municipality’s achievements since being taken out of technical administration last month, Thebolla expressed optimism.

“Last month we were removed completely from administration, which indicates that as a municipality, we can now stand on our own. We have worked hard in traversing this road, and Pietermaritzburg is on track to becoming a city that its residents can be proud of.”

However, despite these positive steps, Thebolla acknowledged that revenue collection remains a significant challenge. He noted that the city’s operation, Qoqimali, which targets businesses and government departments that owe money, has helped reduce government and business debt.

“We are concerned about the R7 billion debt, with the bulk of that money owed by households – people in the suburbs and townships who are not paying. We urge those who cannot afford to pay to come forward and register under our indigent policy. We also encourage those who owe but have ‘forgotten’ to pay to come forward and make arrangements,” he said.

Thebolla emphasised that revenue generation is the lifeblood of any municipality, and the city will strive to collect all that is owed.

“Through operation Qoqimali, we have been able to drive down the debt owed predominantly by businesses and the government. However, we still face challenges with households, which may lead us to take difficult decisions, such as restricting services.

“There are instances where we restrict services to a household, but it is quite clear that that household is not in a position to pay. However, the culture of non-payment for services is ending. The key service is electricity. If a transformer breaks, we first conduct an audit to see if we have paying customers in that area. If we do not, we will no longer fix that transformer and will leave it unrepaired. This is not something we want to do, but we must collect the revenue,” he said.

Thebolla also mentioned that the municipality has invested hundreds of millions of rand over the past three years in electricity infrastructure.

Discussing the work done by the council to emerge from administration, Thebolla said the focus has been on improving governance, ensuring proper and functional political oversight, and filling all vacancies.

“We have stabilised services, revenue collection is more stable, and the city is looking cleaner. We are on the way to becoming a city that many residents can be proud of.”

ACDP councillor Rienus Niemand said the municipality has never been in a worse financial position.

“We have R7 billion owing to the municipality, and there is very little being done about it. At this point in time, we have 40 000 prepaid meters, of which only 15 000 are paying.

“The rest are stealing! Big problems need big commitment and big action. The only thing the paying public has experienced to date has been massive above-inflation tariff increases to offset the theft; in effect, they have been subsidising the thieves.”

Anthony Waldhausen, chairperson of the Msunduzi Association of Residents, Ratepayers, and Civics, said 70% of residents, businesses, and some government departments who can pay for municipal services have not been doing so.

“They have been receiving free water and electricity for many years, and the council and the mayor have done nothing about this situation.

“If the mayor is referring to the 70% who don’t pay that they will cut their services, then we welcome it. The state of the municipality hasn't improved and is completely dysfunctional, operating under crisis management.

“The fact that the council approved R3 million towards the Last Dance Musical Festival on 31 December shows that they lack the ability to prioritise the needs of the people.”

THE MERCURY