CHDM approves new debt rehabilitation programme to help struggling customers

The Chris Hani District Municipality (CHDM) council has approved a debt rehabilitation programme, giving financially distressed customers another opportunity to apply for a discount on their outstanding municipal debt.

Customers may apply for a once-off debt writeoff, focused on rehabilitating defaulting debtors.

CHDM spokesperson Bulelwa Ganyaza said the programme was introduced by the district on August 1 2020 and was intended for specific categories of consumers to encourage payment of outstanding debt while reducing the burden of debt.

“The programme is the municipality’s intervention to assist financially distressed ratepayers and defaulting customers to bring their municipal accounts up to date by clearing arrears.

“Successful applicants will receive up to 50% immediate debt write-off provided the customer complies with all the conditions,” Ganyaza said.

She said indigent consumers will receive an immediate 100% write-off provided they are registered indigents and meet the qualifying criteria.

“Residential customers, small businesses, faithbased organisations, or places of worship (such as churches, mosques and synagogues) and non-profit organisations are eligible to apply.”

She said the scale to be used was: Customers with a monthly gross income between R22,001 and R30,000 shall be offered 30% write-off of the debt above 90 days, all interest and penalty charges shall be reversed.

Between R30,001 and R40,000 a 20% write-off of the debt above 90 days will be offered; all interest and penalty charges shall be reversed.

Between R40,001 and R50 000, a 10% write-off of the debt above 90 days shall be offered; all interest and penalty charges shall be reversed.

Above R50,00, surcharges (such as disconnection fees) and interest charges shall be reversed.

She said: “The latest audited annual financial statements for small businesses, churches and nonprofit organisation, proving that turnover does not exceed R3m and six months bank statements at the date of submission of the application, are required.

“The market value of the property and all properties owned by the applicant (excluding business, churches and non-profit organisations) must not exceed R1.5m.”

She said account holders could apply any customer service centre of the CHDM, in all satellite offices across the district or online.

“The account holder must have a valid SA ID or a document that confirms the legal residence in SA.

“A proof of income for the account holder and spouse is also required including certified bank statement, for all accounts held by the account holder and spouse, for a period of three months before the submission of the application.

“The account holder must also complete the application form, in the case of deceased estates, the person in position of the letter of authority from the master of the court’s office.

“Furthermore, the account holder and his/her spouse must give the municipality permission to perform a background check through a reputable credit bureau and sign a debt rehabilitation programme agreement,” she said

Ganyaza said the account holder was also expected to provide meter numbers and meter readings of all meters on their properties, provide pictures of the metering devices which clearly identify the location of the device, the reading on the device and the meter number.

“The municipality reserves the right to cancel the agreement and reinstate debt written-off should it be discovered that the account holder provided the CHDM with falsified information.

“Small businesses, churches and non-profit organisations must submit audited financial statements and six months’ bank statements.

“Customers are encouraged to apply, as the debt programme runs until June 2024,” Ganyaza said.