City of Joburg ratepayers can have debt slashed by 50%

The City says this will be done through the city's debt rehabilitation programme.   

MMC of Finance Jolidee Matongo says the programme began two years ago and is currently in its second phase.

"It's  a programme where we are trying to say that those who owe the city are encouraged to come forward if they meet the qualifying criteria.

"The qualifying criteria would be that the joint income of the household must not be more than R22 000 but also the property value must not be more than R1.5 million.

"Those who qualify and owe the city over the period of 90 days once they qualify in terms of the criteria we write off immideately 50% of their debt. If they continue to pay the city the current consumption including  property rates and taxes over a period of three years without fail we write off the other 50% of the debt."

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The city has been struggling with debt collection since Covid-19 hit consumers’ pockets.

 Although a round figure has not been provided as to how much debt that the city has accumulated as a result of the pandemic, Matongo estimates that debtor's book is sitting at over R30 billion. 

"We don't have the figures off hand, but the debtor's book of the City is sitting as we speak today at around R33 billion which comes over a period of time more than five years.

"What we are trying to do is to respond to lowering the debtors book that we have." 

Residents have until the 31st of July to apply to be part of the debt rehabilitation programme.