Tshwane to write off R754m debt

schumi

schumi

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The City of Tshwane will write off R754-million in debt incurred by poor residents in the council’s Mawiga Zone.

Residents incurred the debt while they were receiving services from an entity formerly known as Sandspruit Works Association‚ which the council voted to disestablish in July 2017.

“This is on the condition that the residents affected begin paying for the municipal services provided to them by the city. This is designed to encourage the residents of Mawiga to start being conscientious rate payers while also rehabilitating the debtors book. This is a progressive and pro-poor move by Council this afternoon‚” Tshwane mayor Solly Msimanga said on Thursday.
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More at : https://www.timeslive.co.za/news/south-africa/2018-01-26-tshwane-to-write-off-r754m-debt/
 
It's not their money to just write off. It's public money, owed to the public purse. A better headline would be "Tshwane to extract an additional R754m from some citizens to pay for utilities and services others get for free".

This is a social and economic problem, not an accounting issue.
 
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If I miss a rates payment they cut off my electricity. I guess I’m privileged...
 
“This is on the condition that the residents affected begin paying for the municipal services provided to them by the city....
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:crylaugh:
 
If you think they will pay think again.
This free ride Africa for the poor and rough ride for the tax payer.
 
Seems to be the carrot.

The stick will come when they are made to pay...
 
Hemi300c said:
If you think they will pay think again.
This free ride Africa for the poor and rough ride for the tax payer.
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A number of people in affluent areas have bypassed their meters
(especially those with prepaid meters installed inside their houses) and are using "free" electricity. It's actually quite simple and a simple audit won't pick it up.
 
letting them off easy wont be a teaching moment, it will just fall behind again. if i learned one thing in my life is that you cant teach anything to anyone if they cant feel pressure. paying this for them just let the pressure off
 
voldoverse said:
letting them off easy wont be a teaching moment, it will just fall behind again. if i learned one thing in my life is that you cant teach anything to anyone if they cant feel pressure. paying this for them just let the pressure off
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That may be true, but how many will be able to service a R50k debt and still be able to pay for their current usage. This is a big issue at most of the poorly run municipalities.
 
ForceFate said:
That may be true, but how many will be able to service a R50k debt and still be able to pay for their current usage. This is a big issue at most of the poorly run municipalities.
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you have a very good point but i just feel like payment responibility is the lesson and not the money so instead of a money write off they should be given a "deal" like ok pay off your 50k bill over 20 years at R200 per month or some scheme like that just so the grt the concept of feeling responible to pay bills no matter how big or small
 
Award winning strategy: How to "encourage ratepayers to pay conscientiously":

  • Give ratepayers services;
  • Bill the ratepayers (and incur further expenses in doing so);
  • When they don't pay:
  • write off the debt;
  • Pat yourself on the back for:
  • running a clean debtors' book; and​
  • encouraging ratepayers to pay.​
  • Call a press conference to tell those who have conscientiously paid for their own as well as the non-payers about your "progressive and pro-poor move";

Surely this would anger the residents who do pay, to the extent that they also stop paying?
 
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