City of Cape Town proposes writing off municipal debt up to 100%
The metro has proposed a once-off debt remission programme.
An aerial view of Cape Town. Picture: Pixabay
CapeTalk’s John Maytham speaks with Councillor Siseko Mbandezi, Mayoral Committee Member for Finance.
Listen below:
Cape Town residents with mounting municipal debt may soon get some relief.
The city is proposing writing off R2.2 billion in outstanding municipal debt.
They say this is not only a compassionate response to economic hardships, but also a way to restore long-term financial sustainability.
Residential properties valued between R450,000 and R2.5million may qualify for a 100% write-off on arrears older than a year.
For properties between R2.5 million and R7 million there will be a write-off of up-to 50% on debt older than one year.
Low-cost housing and indigent households earning under R3,500 per month will qualify for full debt cancellation.
The programme is conditional on the owners entering a payment arrangement for current and future bills.
If they do not stick to the arrangement, their debt will be reinstated.
“The City will have to look into the affordability of the person, so that the amount that the city and yourself agree upon does not put you in a difficult position.”
- Councillor Siseko Mbandezi, Mayoral Committee Member for Finance
In addition to this, Mbandezi says you must approach the City to have your debt written off - it will not happen automatically.
RELATED: Did you know? City of Cape Town recovers debt via prepaid electricity purchases
Scroll up to the audio player for more.