KOUGA Municipality is taking action to address arrear debts effectively with the full implementation of its Customer Care, Credit Control, and Debt Collection Policy, effective May 1, 2024.
In line with Section 6.1 of the Customer Care, Credit Control, and Debt Policy, the municipality aims to implement procedures that curb the escalation of arrear debt, ensuring fiscal responsibility and sustainability.
Kouga Executive Mayor, Hattingh Bornman, underscores the importance of these measures, saying, “It is crucial for the municipality to manage its finances efficiently to continue providing essential services to our residents.
“The total outstanding arrears debt for accounts 60 days and older amounts to R442 million.
“This significant financial shortfall has a direct and severe impact on the municipality’s ability to deliver essential services to residents. Without the recovery of these outstanding funds, the municipality faces immense challenges in maintaining and improving infrastructure, ensuring service delivery, and meeting operational costs.
“The continued non-payment of municipal accounts threatens the sustainability of key services such as water supply, sanitation, electricity distribution, and waste management.”
According to Bornman, as a result, the municipality is left with no alternative but to take decisive and urgent action to recover this outstanding debt. The financial viability of the municipality depends on the timely and full payment of municipal accounts, making debt collection a matter of paramount importance.
“We are very aware that the rising cost of living is putting immense pressure on our residents, and we are doing our utmost to keep tariff increases as low as possible. We cannot, however, deliver the services our residents deserve without taking action to recover outstanding debt,” he said.
The policy outlines that customers in arrears who have not made arrangements with the municipality will face restrictions or disconnections of essential services such as electricity, water, and other municipal services.
Bornman reaffirms the commitment to fair but firm action, stating, “While we understand the challenges some residents may face, it is imperative for us to uphold financial discipline to ensure the equitable provision of services to all, while remaining mindful of the rising cost of living.
Under this initiative, 30% of electricity prepaid sales for customers that have arrear debt will be allocated towards arrears amounts owed, with residents who have honoured their arrangements exempted from this implementation.
Residents should note as per the policy, the municipality must deduct on a ratio of 50:50. However, the municipality had to deviate from the policy taking into account the burden residents are facing with the increase in basic needs such as food, fuel etc.
“We aim to strike a balance between supporting those in genuine need while ensuring fairness and accountability in our financial management,” said Bornman.
Residents are encouraged to proactively engage with the municipality to make suitable arrangements and avoid service disruptions. Municipal offices in Jefferys Bay and Humansdorp are open to assist residents in this regard.
“Our doors are open, and we are committed to working with residents to find sustainable solutions to their financial obligations,” said Bornman.
