ETHEKWINI NEWSFLASH
FOR IMMEDIATE RELEASE
FINANCE COMMITTEE NOTES STABLE FINANCIAL POSITION, INTENSIFIES DEBT COLLECTION AND REVIEWS KEY POLICIES
The City remains in a strong financial position despite ongoing economic pressures and revenue collection challenges.
This was highlighted during the Finance Committee meeting held today, 18 March.
While cash and cash equivalents have declined over the past eight months, the Municipality continues to benefit from stable grant receipts from national and provincial treasury, supporting overall cash flow.
As of Monday, 16 March, cash on hand stands at R6.3 billion, representing 43 days’ liquidity, inclusive of grant funding.
All proposed policies and amendments will be submitted to Full Council for consideration and final approval.
REVENUE ENHANCEMENT MEASURES
The Committee noted that the Revenue Management Directorate is intensifying efforts to recover outstanding debt through targeted interventions.
These include:
* Reducing estimated meter readings to below 10 percent
* Enforcing disconnections for non-compliant customers
* Implementing full debt control measures, including issuing final demand notices
The Municipality is addressing more than R26 billion in outstanding debt.
Additional measures include:
* Replacing faulty and tampered meters
* Conducting meter audits to detect illegal connections
* Investigating prepaid meters reflecting zero consumption
COST CONTAINMENT MEASURES
The Municipality continues to implement cost-saving initiatives aimed at improving efficiency and reducing losses.
These include:
* Strengthening verification processes for invoices
* Leveraging technology to prevent fuel theft and misuse of Municipal vehicles
* Conducting regular and unannounced stock audits to curb material theft.
Government and parastatal debt, currently at R2.2 billion, is being escalated to the Presidential eThekwini Working Group.
PROPOSED DEPOSIT TARIFF INCREASE
The Committee approved a proposed 5 percent increase in the Revenue Management Policy deposit tariff, which will be included in the 2026/27 Draft Budget and IDP consultations.
This adjustment reflects the cost incurred by the Municipality when providing services to new customers prior to billing.
During this period, the Municipality must settle obligations with service providers such as Eskom and Umngeni-uThukela Water.
The deposit serves as a security measure and is not recognised as Municipal income.
DRAFT CREDIT CONTROL AND DEBT COLLECTION POLICY REVIEW
The committee also recommended the following amendments for consultation and approval by Full Council:
Undetected Underground Domestic Water Leaks
To address water losses and assist customers facing high bills due to undetected leaks, the Municipality proposes a fixed monthly charge for all domestic water users.
This will fund adjustments or write-offs in qualifying cases.
Customers will now have 180 days (previously 60 days) from the date of repair to submit a water loss notification form, along with supporting documentation, at Sizakala Centres or Revenue Customer Services centres.
Account Disputes
Customers wishing to dispute an account must submit a written application using the prescribed form, clearly stating the reasons and providing supporting information.
The revised policy strengthens the authority of Municipal officials to investigate and resolve disputes in line with policy provisions.
DRAFT INDIGENT SUPPORT POLICY
The proposed amendment allows trained Municipal officials, in addition to social workers, to conduct socio-economic assessments and verify applications for Municipal support programmes.
This aims to improve efficiency and expand access to indigent support services.
ENDS
Issued by eThekwini Municipality’s Marketing and Communications Directorate
