Kungwini offers discount for settling municipal debt PDF Print E-mail
News - Aktueel
Wednesday, 18 November 2009 06:21
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If you pay your outstanding municipal services debt before 27 November, you’ll get 30% discount.

This new incentive scheme for municipal debt collection was announced during Kungwini Local Municipality’s seventh special council meeting on 9 October.

In a bid to collect outstanding municipal debt, the council now offers a 30% discount incentive scheme for all outstanding debt as reflected on residential and business consumers’ October 2009 account.

Down payment
For residential consumers, this discount will be subject to the down payment of at least 50% of the total outstanding amount, based on the total balance in October.

Businesses, however, will have to settle the total outstanding amount to qualify for the 30% discount incentive. Arrangements need to be made to settle the remainder of the arrears within 24 months.

This incentive scheme is only applicable for the five weeks that started on 26 October and will close on 27 November. After 27 November all outstanding debt will be aggressively pursued by debt collection and credit control measures such as disconnection of electricity supply, blocking the sale of prepaid electricity, issuing of summonses and legal procedures.

Interest
The council approved the levying of interest on outstanding municipal services debt from November this year. Interest will be charged at the repo rate, as determined by the SA Reserve Bank, plus 2%.

The council also approved a further incentive scheme of 3% discount applicable to the prompt payment of one’s monthly municipal account before its due date. This discount will only be applicable to the current account and not to arrangement instalments.

Set aside
During the same meeting the council also indicated that cognisance was taken of the Supreme Court of Appeal judgement in which the rates increase for the 2004/5 financial year was set aside for Kungwini West. The council approved the necessary credits to be passed against the respective accounts. The total credit amounts to R32,4 million.

 

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