Government threatens to name and shame debtors

South African government entities are prepared to embarrass their own clients — including errant ratepayers — as a last resort to recoup mounting debts.

Newcastle municipality in northern KwaZulu-Natal has said it will name and shame defaulters in a local newspaper.

Residents and business owners in the town have been warned that if the municipality does not receive feedback after notices are issued, the names of the defaulters and the amounts owed will be published.

Mayor Makhosini Nkosi said letters had been sent to defaulting consumers, and warned that the council would also implement water restrictions for those who can afford to pay but don't.

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"That is to get them frustrated and come to us to make arrangements, which is what we want. We are not in a good financial situation. At council we took a decision to go into overdrive to collect money," said Nkosi.

He said outstanding debt for rates, water and other utilities dated back several years and now stood at close to R1-billion.

"We are using naming and shaming as a strategy. We would be very careful before taking such action, [making sure] that the person was notified and checking if they made any arrangement to pay the outstanding debt."

He said that after a report went out in the local newspaper about these plans, people had been contacting the municipality.

Nkosi said a woman visited the council last week with a R465,000 bill.

Sabelo Gwala, the KwaZulu-Natal executive officer of the South African Local Government Association, said the strategy of naming and shaming would have to be an additional way of recovering money and could not be the only method.

He said it might not stand up in court as a reasonable method unless all steps had been followed.

"It would be unfair and unprocedural to just find your name in the paper with the amount owing. My main worry is when you post something and the person has disputed the figure. It would be defaming them and if they prove your records are incorrect," said Gwala.

He said Salga had used a similar approach with defaulting state departments.

"If government departments do not come to the party we will also name and shame. At a provincial level they have responded favourably. We are still discussing it at a national level. It seems to be becoming a viable method."