The City of Cape Town will extend its debt write-offs to R4,1 billion this year, given the severe impact of the Covid-19 pandemic on lives and livelihoods.
According to Mayor Dan Plato the City has been providing rates relief of more than R3 billion per year over the last few years.
“It is hoped that these incentives and debt write-offs will create a stronger culture of payment, while at the same time helping our residents who have old City debt to sleep easier at night.”
Would be beneficiaries include indebted pensioners, as well as religious organisations, cemeteries and animal shelters.
The City’s debt write-off provisions breakdown: . R1,36 billion – This applies to outstanding debt interest, as at 31 May, for both residential and commercial debtors. There are no conditions and customers do not have to enter into a payment arrangement.. R2 billion – These write-offs are for arrears of property rates and services and sundry charges, applying to debt older than three years, as at 30 June 2021. Customers who have valid payment arrangements, for debts outstanding from 1 July 2018, may also benefit. Debts will be reinstated if the debtor defaults on the agreed payment arrangements.. R28,6 million – This is debt on all residential properties, with a zero municipal valuation, mainly relating to indigent households. It will only apply to the City’s rental properties, low-cost housing initiatives and Breaking New Ground (BNG) project properties.. R76,8 million – The City’s 20 550 pensioners registered for Rates Rebates for Owners Dependent on Pension and Social Grants, who are struggling to pay their accounts will receive once-off write-off.. R162,4 million – Religious organisations, cemeteries, crematoria, non-profit organisations, animal shelters, local community museums, old age homes and other entities registered with the City as at 31 May 2021 will have their debt written off. Entities who are in the process of being recognised and will be registered with the City before or on 31 December 2021 also qualify.. R421 million – This applies to the City’s housing rental debtors, owing debt older than three years. . R57,5 million – This applies to debt older than three years for City’s Property Management lease debtors.
For both the City’s housing rental debtors and lease debtors of the City’s Property Management, they need to have instalment plans with the city, and a payment arrangement. Debts will be reinstated if a debtor defaults on the agreed payment arrangement.
