By Thabo Mokgola
ETHEKWINI Mayor Obed Mlaba has sounded a warning to the city's arrears defaulters, saying the increase in outstanding debt is reaching alarming proportions.
Presenting the municipality's budget in Durban today, Mlaba said in order to facilitate collection of the arrears; the services to the defaulting consumers were terminated in the case of electricity service and a restriction of supply in the case of water. This was after sufficient notice had been given to the consumer.
The outstanding debts, he explained, were handed over to the Debt Collection Department for collection and procedures were in place to try to recover the debt. "The council is stringently applying measures to recover outstanding debt and has confirmed its policy of Sale-in-Execution of property for non payment of property taxes," he confirmed.
Mayor Mlaba said rates payable by properties under the control of the Ingonyama Trust had still not been paid for the period up to 1 October 1998. With respect of period with effect from 2 October 1998 in terms of Ingonyama Second Amendment Act all deeds of Grants, Leases and Private Treaty Owners are rateable and the occupiers of these properties are the deemed owners. "The total amount owing for the period up to 31 March 2004 amounts to approximately R93 million," said Mlaba.
The size of this year's budget has grown to R10 849 billion, comprising a R2,293 billion capital and R8,556 billion operating budget. The previous one was R9,135 billion, with R 7,343 billion allocated to operational expenditure and R 1,791 billion to capital expenditure. "The size of this budget is an indicator of the growth of this city and also of the Council's response and commitment to its residents, ratepayers and the business community which it serves," said Mayor Mlaba.
On a positive note, he said the Global Credit Rating Company in its latest analysis of South African Local Government, has upgraded the domestic, local currency credit rating of the municipality. It in turn awarded the council a credit rating of AA, which reflected the council's very high credit worthiness supported by good fundamental protection factors. "This new rating will provide the municipality with a sound financial basis to meet its economic development and service delivery challenges".
SOURCE: - BuaNews
Presentation for Seminar
