City's 50% debt write-off plan

Ratepayers say systemic problems must be tackled

- ZAINUL DAWOOD

WHILE a 50% debt write-off plan by the eThekwini Municipality has been welcomed by ratepayer groups and opposition parties, they have warned that the systemic issues leading to rising debt have to be addressed.

These included high tariffs, aging infrastructure, poor service delivery and incorrect billing.

The Bluff Ratepayers and Residents Association said that the municipality's proposed 50% debt write-off was a welcome gesture, but it risks being more of a tick-box exercise than a real solution.

Norman Gilbert, chairperson of the BRRA, said that while it may offer shortterm relief to struggling households and businesses, it doesn't address the deeper issues causing the debt—like poor service delivery, aging infrastructure, and unaffordable tariffs.

The special debt relief programme was given the go-ahead at a council meeting yesterday. The water debt as of the end of January 2025, of R14.7 billion was the biggest contributor, due to undetected underground leaks and short payments by insurers. The municipality has found that many customers are unable to settle these debts and thus regards this as irrecoverable.

The programme is an initiative aimed at reducing municipal debt by offering residents and businesses a 50% write-off, provided they pay the balance in full before the end of the financial year.