DURBAN - WIDESPREAD theft of water and electricity by community members is driving up the consumer debt crisis the Msunduzi Municipality is facing and threatening the survival of the municipality.
The municipality’s consumer debt is standing at R4.6 billion.
Water and electricity are the biggest trade services of the municipality. Water theft accounts for close to half of the debt at R2 billion.
The municipality is forecasting it will suffer more than R200 million in water losses this financial year largely because of theft and leaks.
Electricity is also expected to suffer more than R200 million in losses.
There have also been concerns that the municipality spends more money buying these items than they sell them for.
Chief financial officer Neli Ngcobo said the ballooning water debt was a serious concern.
“The water debt is a serious concern and the debt has reached R2 billion, this is followed by rates,” she said.
She said the main problem was the widespread theft of services in the municipality.
“Many people are stealing, many connect themselves to the system.”
She said more disconnections should be happening.
“We are going to start with the process of amnesty for those people including the indigent but should not forget the main issue that people are stealing,” she said.
Municipal manager Madoda Khathide said they would be intensifying the disconnections and targeting the areas that did not pay.
He said it was important for the municipality to also ensure billing was correct and that bills reach the correct residential addresses.
“Some of our customers do want to pay but they are discouraged by the incorrect bills they receive,” he said
Administrator Scelo Duma said: “The effort to contain electricity and water losses should be reinforced and supported by everyone because unless we do that the municipality will continue to bleed,” he said.
ACDP councillor Rienus Niemand said theft was a serious crisis and unless the city moved to tackle this problem, all the council’s efforts to turn the city around would be in vain.
“If we stopped the theft, we could have R3 million each day of cash. The ACDP notes with great concern the ever increasing debtors’ book. This despite the introduction of debt collectors who simply picked the low hanging fruit and earned themselves a cool R17 million or more in commissions.
“About 50% of disconnections for non-payment are reconnected by the debtors themselves. A culture of impunity reigns with theft of water and electricity now representing more than 50% of all material losses.”
DA councillor Sibongiseni Majola said consumer debt had reached a crisis level that could imperil the municipality.
“We cannot afford to keep losing almost half a billion rand on our two key trade services.”
ANC councillor Jabu Ngubo said while theft was a serious problem, there was also the big issue of leaks which also contributed to water losses.
The Mercury