The City of Cape Town recently approved the debt write-off incentive of approximately R4,1 billion for qualifying debtors. This is intended to improve the culture of payment and help keep the City sustainable, as well as assisting struggling debtors. Among those who might benefit are tenants of the City’s more than 57 000 affordable housing rental units who have debt older than three years. They are encouraged to contact the City to find out if they qualify for such an opportunity.
The debt write-off incentive action was taken due to the continued impact of Covid-19 on lives and livelihoods and the much slower than expected economic recovery over the past year. Amid the resurgence of Covid-19, the City is acting to alleviate further hardship where possible.
‘This action, which involved an in-depth, legally vetted and well-deliberated process, is only possible because of the trust there is in the City and the resultant high payment ratio for rates and services, which is unparalleled in South Africa. This is helping to keep the City sustainable and means we are in a position to assist qualifying debtors out of humanitarian consideration. We thank the many loyal residents and businesses who continue to pay their accounts. Qualifying customers may apply for the write-off of arrears debt older than three years provided they enter into a payment agreement with the City for the remainder of their debt. This is over and above the R3,4 billion in rates and service relief to qualifying customers allocated in the new financial year,’ said the City’s Mayoral Committee Member for Finance, Alderman Ian Neilson.
‘It is hoped that these debt write-off incentives will create a stronger culture of payment, while also helping our residents. A stronger culture of payment will make the City more resilient and sustainable going forward. This incentive is just one of the ways we are nurturing a healthy payment culture and we acknowledge that it does take time to do so. The maintenance and upgrading of the City’s rental stock is partly funded from rental income, and tenants need to pay their rent to ensure the City can continue to do so. Over the past two years, the City spent more than R1 billion on the maintenance of these affordable rental units. Our tenants are encouraged to contact the City and their cases will be considered on application to the City, on a case-by-case basis. They will be informed whether or not they qualify when they visit a customer interaction centre or contact the call centre with account enquiries,’ said the City’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi.
Source: City Of Cape Town