R298m in indigent services debt written off

THE Buffalo City metro council last week wrote off debt of R298-million in respect of services rendered to indigent people over three months from October to December.

The poor, according to municipal figures presented to the council, received R56-million worth of refuse collection, R36-million of sewerage services, R54-million in sundries and fire levies, and a huge R147-million worth of water for free.

This means that over this period, the metro’s poor received services worth about R100-million a month for free.

The council has urged officials to look into areas of concern, which include verification of beneficiaries and their addresses.

The debts to be written off were for the period from October 1 to December 31 and are in line with the metro’s credit control policy.

“On a monthly basis, rates and/or service charges are raised in respect of registered indigent customers.

“When the monthly bill is produced, the indigent subsidy and where applicable, the rates rebate, is granted,” Andile Sihlahla said in his report to council.

He said that in many instances the monthly amount billed exceeded the indigent subsidy and rates rebates.

The excess amount, supposed to be paid by the indigent customers, was not paid. He said the monthly indigent subsidy allocation was capped at R623 and that the metro’s credit control policy stated that the council’s approval must be obtained to write off irrecoverable debt.

Sihlahla said only minimal credit control action could be applied to collect the debt from indigent people.

Despite having to spend R298-million for only one quarter of unpaid indigent bills, the metro has only set aside R318-million to cover bad debts in the 2018-19 financial year.