Cape Town - Despite over-recovering close to R1 billion in punitive water charges, cash-strapped ratepayers owe the municipality R8.34 billion.
This is according to the interim total outstanding figures for rates and
services owed to the City as at June 30, signalling an 8% increase in debt for June in comparison to May.
In its debt and collections report for June, City revenue chief Trevor Blake said the debt figure included the current amount due but not yet payable and R989702366 unpaid on indigent properties where the Water and Sanitation Department must repair identified water leaks and install water management devices, and prepaid electricity meters, in order for the one-off debt write-off to be implemented.
Blake said R415 000 000 was written off as bad debt.
“Accounts adjustments were
performed during June 2018, which together with the implementation
of the interventions and system enhancements in terms of the water and sewerage charges, have significantly reduced the debt to a total of R8.348bn,” he said.
Blake said the water crisis had a huge impact on the collection ratio and the City’s debt.
“It must be noted that the City’s debt has increased significantly since the punitive tariffs were implemented.
“There has been a major drive to rectify the billings on indigent properties and appropriately deal with debt charges on these properties, which has significantly reduced the debt from R9.173bn in May 2018 to R8.348bn as at 30 June,” he said.
The written-off bad debt, Blake said, had a positive effect on the reduction of the debt.
Blake, however, said arrears for June were R5.271bn, but this decreased by R623 534 490 compared to May.
“Focus continues to be given on these accounts to enforce payment,” he said.