More than R1.9 billion of debt written off by Nelson Mandela Bay Municipality as irrecoverable

SEPTEMBER 30, 2014

A total of just over R1.9 billion owed to the municipality had been written off as irrecoverable or as part of debt relief by the end of July this year, according to a report submitted to the Budget and Treasury Committee.

An amount of R1.086 billion has now been written off in respect of arrears reflected on the accounts of poor households prior to them qualifying for an Assistance-to-the-Poor (ATTP) subsidy.

The decision to write-off these amounts was taken by the then Mayor in February 2004.

The total to be written off for July is R6.7 million, of which just over R2 million is in respect of water; R1.1 million for sanitation and R1.4 million in interest.

A total of R519.9 million has been written off in respect of arrear amounts in excess of 90 days on the accounts of poor households qualifying for ATTP.

The decision to write-off these amounts was taken by the then Mayor in September 2008 with the amounts regarded as being irrecoverable.

Of the amount of R9.3 million writ-ten off for July, R4.12 million was in respect of water; R1.6 million for sanitation and R1.6 million for inter-est.

The Debt Relief Programme was introduced and approved by the Mayor in July 2010, since when a total of R294.7 million has been written off.

In the 2013/14 financial year a total of R91.7 million was written off, with R15.5 million the figure for July this year.

Of the amount written off for July, R3.6 million is in respect of water; R2.1 million for sanitation and R1.8 million for refuse while R2.4 million represents interest.

The Debt Relief Programme is part of the overall strategy adopted by Budget and Treasury to strengthen the metro’s cash position. - metrominutes