These Joburg residents could qualify to have their municipal debts written off
The City of Johannesburg has approved a ‘breakthrough’ debt rehabilitation programme which will allow for struggling residents to apply to have their municipal debts written-off.
The city’s finance MMC, Funzela Ngobeni, said that the programme will bring a new approach to Johannesburg’s increasing debtors.
“For years, residents existing on the fringes of the active economy have struggled to pay for municipal rates and services,” he said.
“Through the approval of this debt rehabilitation programme, the city will no be able to ensure that defaulting customers are brought back into good standing on their municipal accounts.”
The broad concept of the programme hinges on an application process that will allow for strained household owners to apply for municipal debt rehabilitation.
Ngobeni said that qualifying customers will receive immediate relief through a 50% debt write-off.
If the customer complies with all the requirements of the programme – which include keeping their current accounts up to date and allowing for regular inspection of metered services – the remaining debt will be written off over a three-year period, he said.
The new programme will apply to the following residents:
- A write-off is only applicable to residential account holders;
- The account holder’s account balance must have been in arrears for more than 90 days as at June 30 2019;
- The combined gross income from all activities of the account holder(s) and spouse must be between R4‚750 and R22‚000 per month;
- The market value of the property and all properties owned by the applicant must not exceed R600‚000.
Ngobeni said that the city will embark on educational roadshows in August, with the application process set to officially start in September.
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