Home News ‘Sol in “dire straits”,offers 30% discount on arrears

‘Sol in “dire straits”,offers 30% discount on arrears

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The municipality says that the the limited offer will come into effect today and would be valid for the duration of the Level 3 lockdown period.

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IN AN ATTEMPT to ease pressure on the Sol Plaatje Municipality’s ongoing cash flow problems, the local authority is offering residents and businesses that are in arrears a 30% discount if they pay their accounts in full.

Municipal spokesperson Thoko Riet said on Thursday that the limited offer will come into effect today and would be valid for the duration of the Level 3 lockdown period.

“The municipality is experiencing dire financial strains due to extraordinary limitations caused by our current economic challenges and the impact of Covid-19 on the country,” she said.

Riet added that this situation had added more pressure to the municipality’s ongoing cash flow problems because of the low debt collection rate from residents.

She stated that, as a way to collect more revenue, the municipality was offering the residents and businesses of Kimberley a 30% discount for all municipal accounts paid in full.

The local authority will also relax the prerequisite requirements as indicated in its debt collection policy.

“This excludes any property that has requested clearance figures (ie property that is being sold or is busy undergoing change of ownership), except where there are special mitigating circumstances.

“The offer will start on Friday (today) and last throughout the Covid-19 period. After this time, the matter will be reviewed and a decision will be taken on whether to extend the discount period or not.”

Riet stated that residents were encouraged during this period to bring their accounts up to date, and those in arrears to make sure they make monthly arrangements.

The municipality’s total outstanding debtors in June this year amounted to R2.359 billion.

Organs of state owed R866 million, commercial businesses R416 million and households R1.3 billion.

The municipality announced earlier this month that it would start a process of cutting off electricity to businesses and its own staff who were in arrears.

The outstanding amount owed by municipal staff in June was R556 996, while councillors owed R39 735.