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City of Tshwane writes off almost R400m of irrevocable debt

The city says it’s found errors in its data capturing system which resulted in some indigent residents who cannot afford to pay for services not being registered as such.

Picture: www.tshwane.gov.za.

JOHANNESBURG - Tshwane Mayor Solly Msimanga has written off almost R400 million in irrevocable debt from the city's books.

Msimanga has hailed this is a progressive move, particularly for the poor, who won't be able to repay their debts.

The City of Tshwane says it’s found errors in its data capturing system which resulted in some indigent residents who cannot afford to pay for services not being registered as such.

Msimanga says the city’s failure to install electricity meters in some areas also resulted in increased debt.

“And in us trying to rectify years of debt, we saw that we would not be able to recover some of the money. Therefore, it is important for us not to have some of the debts in our books.”

Some of the debts written off include electricity, property rates and water which accounts for over R200 million.

Msimanga says the city has also incurred an additional R754 million in a dysfunction in a municipality in the north of Tshwane.

That municipality has now been incorporated into the city.

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