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Broke Eastern Cape municipality writes off R1.2bn debt owed by residents, businesses | News24



The cash-strapped Amathole District Municipality within the Eastern Cape has written off R1.2 billion in irrecoverable debt owed to the council by companies and the general public.

  • The Amathole District Municipality has written off R1.2 billion price of unhealthy money owed.
  • It introduced that regardless of embarking on vigorous debt amassing initiatives, its prospects wouldn’t pay. 
  • It mentioned the debt had been escalated by poor prospects who failed to use for indigent subsidies.

The cash-strapped Amathole District Municipality within the Eastern Cape has written off R1.2 billion in irrecoverable debt owed to the council by companies and the general public for municipal companies comparable to water and electrical energy.  

The municipality introduced in a press release that the council had accredited the transfer throughout an assembly held on the Calgary Conference Centre outdoors East London on 29 April. 

The approval is consistent with the municipality’s credit score management and debt assortment coverage which supplies it authority to jot down off debt thought to be irrecoverable. 

The R 1 218 421 238 debt is split throughout 9 classes:

• Domestic – R 785 206 322 

• Liquidated Businesses – R 67 062 684 

• Indigent – R 117 127 332 

• Inactive – R 13 835 171 

• RDP – R 57 977 395 

• Estate Lates – R 173 378 819 

• Farms – R 746 830 

• NGO/NPO – R 1 828 692

The municipality revealed that it was unable to get better the debt regardless of conducting vigorous debt amassing initiatives.

The municipality mentioned that, along with these challenges, there was additionally “constant” theft and misuse of water by residents. 

READ Broke Eastern Cape municipality’s R1.5m mayoral advisor post sparks cronyism allegations

The municipality was implementing measures to cut back unlawful connections and and different abuses of the system, mentioned spokesperson Nonceba Madikizela-Vuso. 

Madikizela-Vuso mentioned an element including to the debt was poor home shoppers who failed to use for an indigent subsidy and subsequently ended up being billed for companies they may not afford.

The irrecoverable debt will worsen the monetary issues of the municipality which is already getting help from the provincial and nationwide authorities so it might probably get again on its toes.

ALSO READ These are the govt departments and state organs owing the broke Amathole municipality R34m

At the start of 2021, it wanted a R180-million authorities bailout to pay 4 months’ wage to its bloated 1 670-strong workforce. 

Municipal supervisor Thandekile Mnyimba beforehand revealed that an unaffordable wage invoice had induced its monetary disaster. He mentioned 900 individuals have been employed in positions not “within its organogram”.  

Of the 900 individuals employed outdoors of the organogram, the municipality mentioned that 500 have been employed in a single month in 2013, in what it termed “mass employment”.


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