EThekwini Municipality special full council meeting decisions - Special debt relief programme to assist households and businesses struggling with old debt
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Date: 2025-05-14 15:42:58

EThekwini Municipality special full council meeting decisions - Special debt relief programme to assist households and businesses struggling with old debt

ETHEKWINI NEWSFLASH
FOR IMMEDIATE RELEASE
 
14 MAY 2025
 
ETHEKWINI MUNICIPALITY SPECIAL FULL COUNCIL MEETING DECISIONS
SPECIAL DEBT RELIEF PROGRAMME TO ASSIST HOUSEHOLDS AND BUSINESSES STRUGGLING WITH OLD DEBT
 
The City, in its endeavour to alleviate the financial burden on its customers, will implement a 50 percent debt write-off of their arrear debt accumulated as at 31 January 2025.
 
The special debt relief programme will run from May until 30 June 2025. This follows the approval of the report at a Special Council meeting today, 14 May 2025.  The approval is made on condition that customers pay 50 percent of the corresponding debt in full and final settlement.
This special programme is intended to assist domestic and business customers experiencing economic challenges. This will further assist customers whose accounts were affected by major water leaks that could not be detected timeously due to various reasons.
 
The City’s Revenue Unit reported that the water debt, as at the end of January 2025, is currently at R14.7 billion, with the biggest contributor to this debt being undetected underground leaks and short payments by insurance. It has been proven that many customers are unable to settle these debts and thus it is regarded as irrecoverable.
 
Council was informed that the Municipality’s debt is steadily growing at an average of 2% per month, including interest at prime plus 2%.  It was approved that for debtors with a debt balance as at 31 January 2025, a debt write-off of 50 percent is granted in full and final settlement of the debt. In addition, the debt owing for the months February to June 2025 must be settled in full.
 
The special debt relief programme was approved to assist struggling households and businesses, while reducing the City’s debtors’ book.
EThekwini Municipality Mayor, Councillor Cyril Xaba, said this initiative is in response to the challenges expressed by residents during the budget hearings.
 
“We have listened to people who expressed economic challenges and unemployment, which results in them not being able to settle debt.  We wish to emphasise that the special debt relief programme is not automatic.  It must be applied for and is based on certain conditions being met.  We encourage residents and businesses to make use of this opportunity,” said Mayor Xaba.
 
EThekwini Speaker, Councillor Thabani Nyawose, announced that the next ordinary Full Councill meeting will be held on 26 May.
 
ENDS
Issued by eThekwini Municipality’s Communications Unit