Debt to be written off by council

Photo: sourced

POLOKWANE – The municipality tabled a report last Thursday requesting the writing off of millions of Rand in irrecoverable debt and credit that are uneconomical to collect or to refund and to clear the suspense account.

The municipality reported a debt book exceeding R800 million at the end of April and made a decision to assess its debts to see if it can be recovered.

Old sundry balances of the former Aganang Municipality, which has been incorporated into Polokwane, amounting to R114 599 549, rentals amounted to R323 125, levies between the transition and up to January amounted to R188 476, sundry debtors amounted to R4 268, RD cheques amounted to R91 188, under-banking to R90, traffic fines to R1,12 million, a banking error amounting to R5 270 an amount of R2 994 732 received in advance an unidentified receipts of R5 196 were tabled before council for approval to write it off as at 30 June.

Rural schools’ rates debt of R11 million, debt on closed accounts below R1 000 amounting to R4,9 million and under collections amounting to R404,3 million, cashier shortages amounting to R99 204, indigent debt at R20,6 million, credit balances amounting to R33,4 million and unallocated credits of R13,3 million and lease agreements or instalment sales of properties transferred under the Enhanced Extended Discount Scheme amounting R413 448 are also to be written off.

The DA objected to traffic fines to be written off, saying cars are registered and it is easy to collect fines from the rightful owners.

Councillors also said people become used to the municipality writing off debts every now and then and prepare to pay at the time debts are reduced to encourage them to pay.

Frank Haas, DA Councillor, said residents who pay regularly and on time should also be given incentives because of this.

nelie@nmgroup.co.za

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Nelie Erasmus
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