Article: Tshwane metro owed R5 billion

The Tshwane metro's apparent inability to collect consumers' growing debts was a matter of concern for the Municipal Public Accounts Committee (MPAC), Beeld reported on Thursday.

But Tshwane has maintained that its monthly collection rate was over 100 percent, even though consumer debt amounted to more than R5 billion.
 
Seems our government and municipalities have a serious misunderstanding when it comes to the concept of math.....
 
How can debt increase when collections' at 100%?

Unless somebody's having parties and other expenses on the sly...
 
The_Librarian said:
How can debt increase when collections' at 100%?

Unless somebody's having parties and other expenses on the sly...
Click to expand...

Something's not quite right with the municipality's accounting department.

They're supposed to have a strict cut-off policy on non-payment.
According to the report, residential defaulters were the biggest culprits and by the end of September they were responsible for R2,8bn of the R4,8 bn debt of 30 days and older.
Click to expand...

Last month they reported saying that there was a massive amount of businesses in Pta East not paying their bills.... how can it be? They all have power, so they've obviously [by using the cut-off argument] paid their bills.
 
froot said:
Something's not quite right with the municipality's accounting department.

They're supposed to have a strict cut-off policy on non-payment.
Click to expand...
Supposed to... Then again, I don’t think it’s a lack of policies as much as a lack of knowing what’s going on and being able to manage it.

News like this really pisses you off if you are someone who does pay your municipal bills. Especially when you’ve just come from a 3 day period of not having power.

First couple of calls: “Sorry, they’re working on the power.” (which they weren’t)
Next iteration: “Sorry, a substation went down.” (which is a lie – only our house was without power)
Still more: “Your power’s been cut, you didn’t pay.” (wrong again, as confirmed by the statement)
3 days and an electrician later: “Oh, it was a breaker on the pole.”

So the question is: do they provide inferior service due to lack of money or do they have a lack of money due to the inferior service they provide? Round and round we go… :(
 
We collect 100% then it passes through 10 hands, suddently its only 50% left...
 
Hmm, it is really hard to understand how you can be going backwards if collection is over 100% unless interest on debt comes in to account.
 
Bern said:
Hmm, it is really hard to understand how you can be going backwards if collection is over 100% unless interest on debt comes in to account.
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These are the same cowboys that shut my water down, because i have not paid last month's tax, and also charged me R150 for "turning the tap to close position"
 
Honestly sometimes I think I'm the only oke paying my fines, municipal fees etc...
 
Bern said:
Hmm, it is really hard to understand how you can be going backwards if collection is over 100% unless interest on debt comes in to account.
Click to expand...

It's the way they account.

They allow for bad debt, the indigent, subsidies, pensioners, free water etc.

They buy utilities in bulk add a profit and then subtract the allowances mentioned above and say that's the revenue target.

Simple example. Buy utilities for R100, add 20% profit gives R120. But let's say bad debt etc is R40. The revenue target is R80.

They collect R82. That's more that 100%, please may I have my bonus? What do you mean I have a shortfall of R18?
 
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