CHDM writes off debt

Chris Hani District Municipality (CHDM) will write off R21,6m of its irrecoverable debt for the years 2021-2024.

This was discussed in an ordinary council meeting at the council chambers on Wednesday.

Presenting the item, CHDM executive mayor Lusanda Sizani said the main objective of the indigent support is the provision of access to free basic services to indigent households as a constitutional imperative.

“The current indigent register approved by council for the municipality is a three-year cycle from 2021-2024.”

Sizani said approximately R97m indigent debt was written off as of December 31 2022.

“This proposed write off amount of R21.6m will be the second batch within the 2021-2024 indigent cycle,” Sizani said.

Sizani said Enoch Mgijima Local Municipality (EMLM) had the highest number of beneficiaries who were in debt.

“EMLM has 3,199 beneficiaries with a total amount of current debt of R6m. Dr AB Xuma Local Municipality has six beneficiaries with a total amount of R12,065. Inxuba Yethemba Local Municipality (IYLM) has 671 beneficiaries with

R2,1m current debt.

“There were 403 beneficiaries from Sakhisizwe Local Municipality (SLM) who contribute to an amount of R759.202. Intsika Yethu Local Municipality (IYLM) had five beneficiaries owing R5,811 and Emalahleni Local Municipality (ELM) had 186 beneficiaries owing R107,795,” he said.

Sizani also presented the list of indigent beneficiaries with old debt.

“EMLM had a total of R9,4m old debt from 1,370 beneficiaries, IYLM had R1,8m from 338 beneficiaries, while SLM’s 119 beneficiaries owed R763,118 and ELM with 47 beneficiaries that resulted to a total of R359 809.34,” he said.

Sizani said: “The financial implication relates to the indigent debt write off amounting to approximately R21,6m, inclusive of old debt. These are the things that we do not normally talk about in the media we do go out to look for people who are indigent with the aim of writing off their municipal debt.”

Council noted and accepted the recommendations.

Councillor Mcebisi Limba said: “We are not doing this because we are going to the elections next year. It’s something that we need to do all the time. People need to know that we are lenient when there is a need to do so.”