KZN MEC for Cooperative Governance and Traditional Affairs (Cogta), Sipho Hlomuka, has expressed his deep concern regarding the increase in consumer debt in the province’s municipalities.
Municipalities such as, uMdoni, Nkandla, Ubuhlebezwe, Alfred Duma, Endumeni, Abaqulusi, Umngeni, Mandeni and Newcastle have been identified as areas that require support and consumer debt relief for the 2021/2022 financial year. Cogta recently released the latest audited figures which indicated that the province’s municipalities saw an increase in consumer debt of R3.47 billion between the 2018/2019 and 2019/2020 financial years with the debt growing from R23.8 billion to R27.2 billion during this period, which represents a 14.45% increase.
According to Hlomuka, the increase in consumer debt is partly due to the economic conditions that have deteriorated as a result of the outbreak of the Coronavirus, which has seen households and businesses across the province struggling to pay for municipal services. Hlomuka believes that the increase in the consumer debt in municipalities places them in a precarious position as they have to continue to provide essential services such as waste removal, water, electricity and sanitation, in an environment of reduced revenue. “We are concerned about the increase in consumer debt and, as a department, we are rolling out measures that are aimed at assisting municipalities in the recovery of debt owed by their consumers,” said Hlomuka.
Some of the key measures will be to support municipalities with the reduction in consumer debt through active citizen participation. Indigent support in reconciling registers with Operation Sukuma Sakhe and debtor’s data at selected municipalities. The reconciliation of municipal billing data with debtor’s data, indigent data and the valuation rolls and focused support on government debt through engagement and facilitation in resolving disputes towards payment across government departments and municipalities. Hlomuka commended municipalities for proactively dealing with consumer debt by providing debt relief to consumers. Consumers have been given the opportunity to commit to payment plans with zero interest in affected municipalities. This support will entail crafting a consumer debt recovery plan with the respective municipalities and support with the implementation and monitoring thereof.
