The city is demanding the payment of outstanding rates and services bills, but has no intention of telling ratepayers which councillors and staff members owe it money.
Last week, the Daily Dispatch reported that BCM employees and councillors owe the city R12.8m.
The Buffalo City Metro council rejected a motion by the official opposition calling for the municipality to disclose information about BCM councillors and staffers who owe money to the city.
On Wednesday, the city, desperate for cash, offered ratepayers up to 60% debt reductions if they paid up.
But a day later, most city councillors fought hard to reject exposure of those members and staffers who feature on the list of those who owe the city.
The cash-scrapped municipality has been on a drive to collect money from ratepayers, even applying an 80/20 policy, where payments for electricity made were allocated to outstanding balances, which has been rejected by residents.
A motion by DA chief whip Anathi Majeke called for a schedule of councillors and employees who had owed the city money for more than 120 days.
Majeke also wanted the precise amount owed by each councillor and staff member, and what the municipality had done to recover it.
But most councillors rejected the motion, including mayor Princess Faku, arguing against publishing personal information. Faku even invoked the Protection of Personal Information Act.
ANC councillor Phumezo Jaxa was the first to reject the motion.
“Our rights are ... defended by the constitution in terms of the right to privacy. The issue of individual debt is a personal matter.”
ANC councillor Kwanele Majeke rejected the motion, saying in an earlier committee meeting the DA had fought to protect one of its councillors who allegedly owed the municipality.
The EFF also opposed the motion with its councillor, Nozibele Tshabe, saying she owed R100,000 despite being an indigent before she became a councillor.
Speaking to the Dispatch after the rejection, Anathi Majeke said: “The ANC has rejected this motion, showing they refuse to be accountable to the public on debts that the staff and councillors owe the municipality.
“This is an indictment of the ANC-ruled BCMM which has gone to lengths to not be transparent to the public at large.”
The rejection comes as the city says it is giving an “early Christmas present” to its debt-laden ratepayers.
Municipal spokesperson Samkelo Ngwenya said if people paid up, 60% of their debts would be written off.
The offer is valid until November 2024.
“Buffalo City is introducing a customer bonanza in the form of a debt incentive scheme, which will give consumers an opportunity to settle their debts with three amazing options that give out huge discounts.”
This was part of the metro’s newly-approved credit control policy to assist it in its revenue management services.
Though the offer may seem to be relief for ratepayers, some believe the BCM gesture is one of desperation.
BCM ratepayers’ leader Leonard Ncumbese said the municipality was selfishly robbing people of their money.
“They are being unfair to people, because their billing system is not accurate, and they never have proof of how they calculated the rates.”
Ncumbese believes all the debt should be scrapped, as people could not afford to pay even the discounted amounts.
“There are people with disadvantaged backgrounds who are billed about R90,000. How does BCM expect someone to produce such an amount? Even the discounted amount is still ridiculous.”
“They are being unfair to people, because their billing system is not accurate, and they never have proof of how they calculated the rates.”
— Ncumbese
The ratepayers’ lawyer, Brandon Blignaut of Niehaus McMahon Attorneys, said: “I believe the incentive offered by BCM will depend on the client.
“If the bill comes to R150,000 and the incentive is 50%, then you still have to pay R75,000, which a person does not agree that they owe.
“I advise customers with small bills to take the incentive, so that they start afresh.”
The debt incentive scheme comprises three options:
* The customer is required to settle the current account, 30-day and 60-day balance, plus 50% of the arrears balance from 90 days and older to receive a 50% discount immediate write-off on the arrears balance from 90-days and older;
* This option requires the customer to pay the current debt and to enter into an arrangement with the municipality for the debt ranging from 30 days to five years. Once this arrangement has been honoured, debt older than five years will be written off; and
* Option 3, also known as the rand-to-rand of the debt incentive, requires the customer to pay the current account plus the 30-day and 60-day debt and then qualify for a 60/40 discount.
This means that for the remainder of the balance, the customer will pay 40% of their debt and the municipality will qualify them for a 60% write-off in instalment arrangements.
Ngwenya said: “The metro is urging consumers to visit our revenue management offices across the metro for more details on these amazing offers.”
In November, the Dispatch reported that the council passed two “review” bylaws, the Electricity Supply bylaw and Credit Control and Debt Management bylaw.
Though it is not stated explicitly on the document approved by the council, finance political head Noma-Afrika Maxongo said the city would now lower the split to 60-40.
The 60-40 restriction applies to customers who are in arrears for more than 30 days.
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