In the past year alone, household municipal arrears in Nelson Mandela Bay have rocketed from R12bn to R16bn.
Two-thirds of Nelson Mandela Bay’s ratepayers are in arrears. Let that sink in.
The new amnesty deal from the municipality is a quick fix.
Nearly 70% of this debt is more than a year old.
That is a bad sign as it shows this is a long-term problem.
The city’s debtors’ book stands at R18bn — just shy of the entire R21.58bn 2025/2026 budget.
We are in a place where what is owed to the city almost equals what the city needs to run.
That is another bad sign.
This is why the municipality is offering to wipe out half of what residents and businesses owe — if they can scrape together the rest within a year.
The municipality’s new debt amnesty programme is a shot at recovery for households, businesses and the city itself.
It is a bold and constructive step.
It is a deal which acknowledges economic hardship while calling on residents and business owners to meet the city halfway.
It is open to residential, business and registered NPO accounts.
Applicants must pay 2.5% of the balance upfront and the rest must be cleared within 12 months, in monthly instalments.
The process is clear, the terms are reasonable, and the September 30 deadline gives residents enough time to act.
Budget and treasury political head Khanya Ngqisha said this was not a handout, but a one-off deal designed to help residents recover.
“The council resolution applies to everyone, whether it’s a business or private household, if you are in arrears.
“Whether someone earns R100 or R1m, a person must just come and apply and they will be considered,” he said.
This is not just a financial initiative.
It is a political decision which puts people first while trying to steer the city back towards financial health.
The Herald
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