eThekwini's R1 billion debt write-off initiative sparks mixed reactions
Political parties in the eThekwini Municipality had mixed reactions to the R1 billion collected in the 50% special debt write-off programme.
The municipality’s recent debt relief programme for May – June 2025 was considered a success, with more than 18,000 customers receiving financial relief, said eThekwini Mayor Cyril Xaba.
He added that it was a strategic intervention to enhance the city’s revenue and alleviate the financial burden on residents.
According to the municipality, the programme sought to assist customers with the debt balance as of the end of January 2025.
Once a customer paid off 50% of the debt, the council would write off the corresponding debt. In addition, the customer would settle the entire debt from February to June 2025.
Customers who were unable to settle the debt for the months after January 31 were allowed to enter into a payment plan not exceeding six months without making any down payment.
Xaba said the city will continue to be firm in implementing credit control to ensure that people pay for the services they use.
He described the special debt relief programme as the most successful one the city has ever implemented.
Councillor Andre Beetge, a DA eThekwini Executive Committee (Exco) member, said the debt relief programme was designed to recover R3.1 to R6.3 billion of the city’s ballooning R40 billion debt, but fell short, exposing serious flaws in planning, communication, and execution.
“The underperformance of the initiative highlights several shortcomings, including poor communication with residents, inadequate staff training and preparation, reliance on manual instead of automated systems that created severe processing backlogs, late reflection of deposits on statements, and concerns around fairness as the program offered no benefit to residents who remain compliant with their accounts,” he said.
Beetge said that future initiatives must be informed by thorough planning and improved systems. This should include resolving account queries before the start of such a programme, providing residents with adequate notice to prepare financially, and ensuring staff are properly trained to prevent administrative bottlenecks.
“Moving from manual to real-time automated processes will also be essential to restore efficiency and public confidence. The DA has proposed that any future programme be implemented later in the financial year, when residents generally have greater access to disposable income through bonuses and other end-of-year resources,” he said.
According to ANC Exco member Nkosenhle Madlala, the special debt relief programme demonstrated that compassionate yet tough governance can both ease the burden on residents and increase the city’s revenue base.
“The R1 billion collected will go a long way in sustaining service delivery. We urge all customers to continue honouring their obligations so that together, we can build a financially sustainable city,” he said.
Mdu Nkosi, IFP Exco member, said the 50% meant a lot to residents who are struggling financially. He said the city must consider the continuation of the programme and extend it to other departments, including the Durban metro police.
“Residents and motorists will grab this opportunity, and we win by collecting outstanding debt. We will ensure that the money is used accordingly so that those paying can see the benefits. Councillors are urged to encourage residents to pay for services; otherwise, the municipality will not have money for basic services,” he said.
zainul.dawood@inl.co.za