Mnquma turnaround plan amnesty slashes rates debt in half

The cash-strapped Mnquma municipality has announced a municipal rates amnesty, giving defaulting businesses and residents a 50% discount in the hope of recovering half of the R161m owed in services.

The Butterworth-based municipality has struggled to collect enough revenue, with some civil servants living rent free at its 520 subsidised flats in Ibika and Msobomvu.

This, municipal manager Silumko Mahlasela said, was costing the municipality between R4m and R5m a year.

Asked how long some civil servants had lived rent free at the flats, Mahlasela said it had been about 20 years.

“I only got here last year and we are working on getting the people to pay.

“Some have been coming forward and making arrangements.

“We don’t want to go there [evict defaulting tenants], but we will take legal action as a last resort,” he said.

Speaking about the amnesty, Mahlasela said residents and businesses would have until the end of February to have their debts slashed by 50%.

“Some of this is historic debt. People must come forward and make arrangements.

“When people default on paying their rates that hinders our ability to deliver effective and efficient services.

“We have a problems of rural roads, parks and tar roads that have to be maintained, among others.

“If people pay, this can be a functioning municipality,” he said.

“We are fully embarked on Operation Khawuleza.

“We don’t want a situation where unpaid rates money becomes a barrier to effective and speedy rollout of basic services, which people deserve.

“Service delivery can only take place when people co-operate with the municipality.”

Mahlasela said they were committed to turning the fortunes of the troubled municipality around.

“From a disclaimer we are able to move up to a qualified opinion within a space of a year since the new administration was appointed.

“There is a gradual improvement and it is testimony that our turnaround strategy is fully effective,” Mahlasela said.

The Daily Dispatch has previously reported on how infighting and factional battles brought the municipality to its knees after the 2016 local government elections, with service delivery being at an all-time low.

I only got here last year and we are working on getting the people to pay

When people default on paying their rates that hinders our ability to deliver effective and efficient services