Nelson Mandela Bay municipality is staring down a financial chasm. Its debtors’ book has ballooned to a staggering R18bn. Some of these accounts have been left unpaid for more than a decade.
The recent proposal to write off R88m from Africorp International Properties and R32.5m from Premier Precision Property Management signals desperation and opportunity.
Other companies in arrears have been urged to contact the municipality.
However, our metro must show transparency, fairness, and accountability in every write-off decision, because public money is at stake.
These two companies have been flagged for potential write-offs, though the reasons behind their selection remain unclear.
Hopefully, the answer will come from councillors asking questions, as the council still needs to approve this decision made in a budget and treasury committee meeting earlier this year.
Africorp’s R176m debt, half of which the municipality seeks to write off, is entangled in an odd set-off arrangement where the city continued to lease properties while arrears ballooned.
No formal agreement exists to justify this decision. This is troubling.
Residents in arrears have their electricity cut off quickly by the municipality. They are forced to immediately pay a portion of the debt to have it restored.
So why is the municipality not cutting the power at the municipal-rented office?
Premier Precision Property Management’s case raises different but equally pressing questions.
A business that once boasted a thriving student accommodation portfolio is now buckling under losses, unpaid bills, and a high overdraft balance.
Yet, the proposal to write off half its R65m debt comes at a time when the city is struggling to maintain basic services.
The municipality must ensure that these businesses are not evading their financial responsibilities, especially when residents, many of whom are already struggling, are still expected to pay what they owe.
Write-offs are sometimes necessary. But they need to be scrutinised and interrogated.
Tough questions must be asked as Nelson Mandela Bay cannot afford any more lost revenue.
The Herald
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