In a bid to improve revenue collection, the Mangaung Metro approved a debt incentive scheme at a council meeting on Thursday 26 February. It is the second year that the metro has implemented such a scheme in an effort to clear the debtors’ book.
Residents with debt on their municipal accounts can, between 1 March and 30 June, apply and make arrangements to fully pay up their accounts.
Residents, as well as residential sectional schemes and homeowners’ associations, can make use of this according to one of two methods: residents who settle their bill in full, in cash, get a discount of 50% on all debt older than 120 days, while those who want to pay off their debt by making an arrangement with the administration will have to make a 30% deposit on the total outstanding amount and pay off the remainder in equal instalments – they will also get a 50% discount.
Churches, non-profit organisations and agricultural property owners can apply for the same discounts.
Businesses can get a 10% discount on debt older than 120 days. They can also get a 10% discount and arrange for a payment plan.
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DA Councillor Frans Bothma said this was a good way to ensure cash flow for the Mangaung Metro.
“With the same scheme in 2024, R221 million was collected.”
AASD Councillor Lucky Mongale said the policy brought hope for a metro struggling with revenue collection.
In his response, Braam Vorster of the VF Plus said the Mangaung Metro needed solid plans and not quick-fix schemes.
“While the employees of the metro are working on this collection scheme, the metro’s debt collectors still get their 8% commission.”
DA Councillor Dirk Kotzé said that while non-paying residents were helped with this scheme, there was no incentive for loyal residents.
“We need to reward ratepayers who meet their monthly commitments to the metro,” he suggested.
Councillors and employees of the Mangaung Metro who had arrears on their municipal accounts have been penalised through salary deductions.
