POLL | Should other municipalities follow the City of Joburg's plan to write off debt?

The City of Joburg's decision to write off debt owed by certain households, small businesses, non-profit organisations and churches has sparked calls for the same to be adopted in other municipalities across the country.

The city said homeowners with a combined income less than R22,000 a month who are in arrears with the City of Johannesburg can apply to qualify for the debt write-off.

Successful applicants will receive a 50% immediate debt write-off, subject to them complying with all the conditions of the programme — which are listed here.

The balance of the debt will be divided into thirds, of which one third will be written off each year for three years.

Where the gross monthly income is more than R22,000, a percentage of the debt above 90 days will be written off on the condition that the account holders settle the account in full.

The city said the programme, which ends on June 30, aims to rehabilitate defaulting customers while bringing their arrears on city municipal accounts back into good standing.

“It is well known that our customers owe Johannesburg a lot of money in unpaid rates, taxes and services. [However] this government is not unsympathetic to our residents’ financial situation. On the contrary, we have put a comprehensive debt rehabilitation programme and rebate structure in place to aid those struggling to make ends meet,” said MMC for finance Julie Suddaby.

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