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Debt Collection Awareness

Newcastle Municipal Manager Mr. B.E Mswane, together with Acting Chief Financial Officer Mr. Sisho Nkosi, Acting Strategic Executive Director; Technical Services  Mr. Lindile Zincume and Acting Strategic Executive; Corporate Services Ms. Nto Vinkhumbo held a Media briefing today, 31 January 2017, to discuss issues relating to the  importance of Debt collection.

A financial analysis was conducted and the TABLE below will list the category and total amount owed as at the 31st of December 2016.

CATEGORY TOTAL AMOUNT
1.Domestic R782 000 000
2.Business R67 409 290
3. Government R23 780 745

 

“The biggest category owed to the Municipality are individuals with R782 000 000 unsettled rates. This amount excludes the indigents, as council has made provision to take care of indigent residents.  Furthermore an indigent audit will take place which to investigate the legitimacy of indigent accounts.  Eleven thousands letters will be sent out to households that will indicate as to how much is owed by a resident”. said Mr. Mswane 

The Municipality will embark on a process of installing water restrictors in the areas where it does not supply electricity i.e. in Madadeni and Osisweni. This process will begin on Monday, 6 February 2017 businesses in Madadeni.

Residence are requested to note the following process once the water restrictors have been installed:

  • In order for a restrictor to be removed the consumer has to make the following payment:
  • The whole amount due from July 2016 until December 2016 and 50% (discretions may be applied but not lower than 20%) of the amount owing from January 2016 until June 2016.
  • It must be emphasized that the current account must be up to date at all times.
  • Only once the payment in respect of the above is received then the water restrictor will be removed.
  • Consumers must then make arrangements in respect of the amounts outstanding prior to January 2016.
  • The above payment arrangements are applicable to all business and individual consumers.

 

Residences are encouraged to use the following number regarding issues around debt collection

034 9400 040

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