THE Chris Hani District Municipality continues to under-collect from its debtors.
This emerged when the mayor of the district municipality, Koliswa Vimbayo, recently tabled the municipality’s financial reports guided by section 52(d) of the Municipal Finance Management Act.
At this time last year, the district authority had a combined collection of 7.6% from all its six municipalities, namely Inxuba Yethemba; Enoch Mgijima; Intsika Yethu; Emalahleni; Engcobo and Sakhisizwe.
In the first quarter of the financial year under review, there has been a slight improvement compared to the 2017/18 financial year.
This year the municipality has collected 13.1% from its debtors – a trend which chairperson for oversight bodies at the district municipality, Ananiah Langa, said could lead to liquidation.
“If the municipality doesn’t improve its revenue (collection), it is likely to be insolvent and effectively be grant dependent. Low revenue collection continues to be a problem and currently recorded at 13.1% while incomplete monthly billings of 79% and 21% for water and sanitation respectively impacts negatively on the institution’s ability to maximise own revenue collection,” said Langa.
The total bill for the Enoch Mgijima Local Municipality in the Komani area currently stands at R25 796 285.50 and R6 359 228.42 has been collected to date, which translates into 25%.
On the Inkwanca side, the district municipality has managed to collect only 3.1% while 3.9% was collected in Tsolwana for the first quarter of the current financial year.
Langa said the committee he chairs had noted with appreciation the in-house strategy currently employed to address problems identified around the billing system and the target to achieve 100% on consumer accounts.
However, he said the in-house strategy on revenue collection using data cleansing as a vehicle to achieve the 100% billings on consumer accounts must be rolled out to all local municipalities under the Chris Hani District Municipalities instead of focusing on Engcobo and Intsika Yethu Local Municipalities.
Vimbayo said the auditing of meters had been completed in Inxuba Yethemba and Hofmeyr and Komani were 80% complete.
Portfolio head for Integrated Planning and Economic Development, Sibongile Mbotshane, said all debtors that refuse to pay for their services should be disconnected.
