The condition is that the debt returns to the account if the customers do not honor their agreement.
- The City of Cape Town is asking people who owe it money to apply for debt relief.
- The plan is to improve the payment culture and help those in debt for more than three years.
- The condition is that the debt returns to the account if the customers do not honor their agreement.
Cape Town hopes that those who owe it a cumulative debt of around R 1.8 billion will seek debt relief.
In a statement, the city said it is asking residents and its tenants to contact them to find out if they are eligible for debt relief or, in some cases, debt forgiveness.
It applied to residents or businesses that had been in arrears for three years or more. In terms of the incentive, people would be required to apply and commit to paying a certain amount each month, and their historic debt could be written off.
“The City’s latest payout ratio is around 98%, which shows that the majority of residents and businesses are paying their municipal accounts and we sincerely thank them for that,” said Ian Neilson, member of the Municipal Finance Committee. (CMM) of the City.
“We are happy with the use of 1.9 billion rand on the special historic debt cancellation, but we still have 1.8 billion rand available to help residents with historic debt, to act as an incentive. to improve the culture of payment and keep the municipality strong and healthy to continue providing services. “
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He said the city has more than 57,000 affordable rental units and many tenants could potentially be eligible for delisting, but only 86 had so far taken advantage of the incentive.
The city’s MMC for Human Settlements, Malusi Booi, said if the rent on the housing was not paid, it would be difficult to make the necessary improvements.
“There are a lot of tenants who can afford to pay, but don’t. For those who are unable to pay, we make a plan if we are approached for help,” Booi said. .
The person or company in arrears can request a possible write-off of the debt provided that the money owed has been added to the account if the person were to default again.
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