Tree and Giraffe – photo of the day

Tree and Giraffe – photo of the day

by | Feb 10, 2025 | Photo Of The Day

Municipality implements credit control measures to address overdue debt

Municipality implements credit control measures to address overdue debt

by | Feb 10, 2025 | St Francis

KOUGA – Kouga Municipality is taking practical steps to address arrears debt with the full implementation of its Customer Service, Credit Management and Debt Reduction Policy effective May 1, 2024
In accordance with Article 6.1 of this policy, the municipality aims to introduce procedures that limit the increase of arrears debt. Also, to ensure fiscal responsibility and sustainability.
Kouga Executive Mayor, Hattingh Bornman, emphasizes the importance of these measures. “It is essential for the municipality to manage its finances efficiently for continuing the delivery of essential services to our residents.”
“The total outstanding debt for accounts that are 60 days and older amounts to R442 million.”

Direct Impact

“This significant financial deficit has a direct and serious impact on the municipality’s ability to deliver essential services to residents.”
Without the introduction of these outstanding funds, the municipality faces major challenges. This in maintaining and improving infrastructure, ensuring service delivery and covering operating costs.
“The ongoing non-payment of municipal accounts threatens the sustainability of key services such as water supply, sanitation, electricity distribution and waste management.”
According to Bornman, the municipality therefore has no other choice but to take decisive and urgent steps to file 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 utmost importance.

Municipality implements credit control measure

“We are very aware that the rising cost of living is putting tremendous pressure on our residents. We are doing our utmost best to keep tariff rises as low as possible.” However, we cannot deliver the services our residents deserve without taking steps to file outstanding debt,” he said.
The policy states that customers who are overdue and have not made arrangements with the municipality will face restrictions or closures of essential services. These include electricity, water and other municipal services.
Bornman reaffirms the commitment to fair but firm action, saying: “While we understand the challenges that some residents may experience, it is imperative for us to maintain financial discipline to ensure equitable provision of services to everyone, while remaining aware of the rising cost of living.”

Striking a balance

Under this initiative, 30% of electricity prepaid sales to customers who have arrears will be allocated to arrears amounts owed. Residents who have met their arrangements are exempted from this implementation.
Residents should take note that according to the policy, the municipality must deduct on a scale of 50:50. However, the municipality had to deviate from the policy. This is due to the burden residents are experiencing with the increase in basic needs such as food, fuel, etc.
“We strive to strike a balance. This is between supporting those in real need, while ensuring fairness and accountability in our financial management,” Bornman said.
Residents are encouraged to proactively interact with the municipality to make appropriate arrangements and prevent interruptions in services. The municipal offices in Jeffreys Bay and Humansdorp are open to assist residents with this.
“Our doors are open. We are committed to working with residents to find sustainable solutions to their financial obligations,” Bornman added.
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