City's debt relief programme: genuine support or an insult to ratepayers?

THE eThekwini Municipality's special debt relief programme aims to assist struggling ratepayers by allowing them to write off 50% of their arrear debt. However, political leaders criticise the initiative as inadequate and potentially exploitative, raising questions about its effectiveness and the municipality's billing practices

- YOSHINI PERUMAL

The programme — which will run from May until June 30, 2025 - allows for households and businesses to write-off 50% of their arrears debt accumulated as at January 31, 2025.

This is on condition that customers pay 50% of their debt in a full and final settlement.

In addition, the debt owing for the months February to June 2025 must be settled in full.

The programme was approved at a special council meeting last Wednesday.

“This is intended to assist domestic and business customers experiencing economic challenges. This will further assist customers whose accounts were affected by major water leaks that could not be detected timeously due to various reasons.

“The city’s revenue unit reported that the water debt, as at the end of January 2025, was currently at R14.7 billion, with the biggest contributor to this debt being undetected underground leaks and short payments by insurance. It has been proven that many customers are unable to settle these debts and thus it is regarded as irrecoverable,” said the eThekwini Municipality in a statement.

eThekwini Mayor, Councillor Cyril Xaba, said this initiative was in response to the challenges expressed by residents during the budget hearings.

“The special debt relief programme is not automatic. It must be applied for and is based on certain conditions being met,” he said.

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