The eThekwini Municipality has introduced a special debt relief programme designed to assist residents and businesses struggling with municipal debt.
The initiative offers a 50 percent write-off on outstanding balances, provided the remaining amount is paid in full. While the plan aims to ease financial strain, it has received mixed reactions from city councillors.
The debt relief forms part of the Revenue Management Unit’s annual strategy to recover and reduce municipal debt by the end of the 2024/2025 financial year.
To qualify, customers must pay 50 percent of their arrears as of 31 January 2025. In addition, they are required to settle all amounts due for the months of February to April 2025.
Those who cannot afford this must enter into a payment arrangement of no more than six months, with no upfront payment required.
Water-related debt is the largest contributor to the municipality’s financial shortfall. As of January 2025, it stood at R14.7 billion.
This has largely been attributed to underground leaks and partial payments from insurance, making the amounts difficult to recover.
The total debt owed to the municipality reached R36 billion by the end of January, an increase of R7.9 billion compared to the previous year.
The municipality has acknowledged this growing challenge, noting that at the end of the 2023/2024 financial year, it had set aside R19 billion as provision for doubtful debt.
This was a significant rise from the R13 billion recorded in the 2022/2023 financial year.
Although the council has approved the debt relief programme, some councillors have expressed concerns.
Several believe the deadline should be extended beyond June 2025, as many residents may be unable to secure the necessary funds in time and could be subjected to debt collection actions.
Councillor Alicia Kissoon of the Democratic Alliance argued that any relief offered must be accompanied by accountability.
She highlighted how residents have been negatively impacted by years of municipal mismanagement, including faulty meters, incorrect billing and undetected leaks.
According to her, asking people to pay half of their arrears in order to access help places an unfair burden on those who are already struggling.
She added that for the initiative to be effective, it must be rolled out with compassion and clarity. Support must be accessible in real time, and municipal staff should be properly trained to assist residents.
She also cautioned against forcing people into repayment agreements for charges they do not legally owe, especially when those charges stem from administrative failures.
In a related concern, it was revealed that nearly 5,000 councillors and senior managers have also fallen behind on their municipal accounts. Staff-related debt currently stands at R80 million.
ANC councillor Nkosenhle Madlala encouraged employees to take advantage of the programme, acknowledging that some are under such financial pressure that deductions from their salaries could leave them with no disposable income.
Jay Singh of the United Independent Movement criticised the government and state-owned entities for contributing R1.3 billion to the municipality’s debt, and urged greater effort in recovering these funds.
Minority Front councillor Sunitha Maharaj suggested overhauling the billing system altogether.
She recommended that the city revert to separate billing for rates, water and electricity, arguing that the current system is ineffective and will only lead to further debt accumulation if not replaced.
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