The City of Johannesburg could write off as much as R6-billion in consumer debt in a new programme that seeks to ensure residents pay their rates and services in the long-term by offering to scrap their debt over three years.
To qualify, customers must: be a residential rather than business account holder; have a balance in arrears for more than 90 days; have a monthly household income between R4,750 and R22,000; and the property’s market value cannot exceed R600,000. Ngobeni said if every qualifying customer signed up for the debt rehabilitation programme the city would write off around R6-billion over three years. The city writes off some outstanding debt every year.This time we’re not just writing off. We’re sort of going into a deal with the customer and ensuring that going forward they can pay what they consume,” said Ngobeni.
Asked about residents who might want their debts scrapped without conditions, Ngobeni’s message was: “Please come forward. We understand that the debt has been there for a long time but we as the city will work with you.”