City of Ekurhuleni considering a 75% debt write-off for struggling households

JOHANNESBURG - The City of Ekurhuleni is considering a 75% debt write-off for households struggling to settle their municipal rates and taxes.
 
Newly appointed finance MMC, Jongizizwe Dlabathi, made the revelation at a media briefing on the metro’s financial position on Wednesday.
 
In 2022, the African National Congress (ANC)’s proposal to write off household debt of more than R20 billion was rejected by the Democratic Alliance (DA) and ActionSA, who were in government at the time.
  
The ANC-led metro is considering providing relief to households historically indebted to the metro by settling their outstanding municipal rates and taxes.
 
The last time the city scrapped household debt was in 2019, which saw the municipality losing over R1 billion in possible revenue.
 
Dlabathi said the metro was in the process of working out how exactly the 75% debt write-off could be implemented.
 
"Realistically, this is the money that we have been attempting to collect but we have been unable to collect it. So we can’t perpetuate a debtors book that increases, knowing very well that the money cannot be collected."
 
He said households who hadn't paid their rates and taxes in over four months would qualify for the 75% debt write-off.