Calling Scotia - Even money chance can't get beat

Pretoria - Residents who are in the red with the Tshwane metro council can now get 50% discount on the debt they owe.

On Thursday a Tshwane council meeting approved an encouragement scheme, which is aimed at shrinking the non-payers' debt of about R3.2bn.

A report by the council's department of finances shows how particularly homeowners and home tenants' debt increased substantially every month.

Residential debt rose by R63.1m between December 2008 and March 2009. By the end of March, residents owed Tshwane R2bn - 65% of the total debt.

Businesses also in the red

Businesses are also moving deeper and deeper into the red, with debt of R597.4m in December 2008, which rose to R622.8m in March of this year.

The report states that it has become imperative for the council to come up with a "creative plan" to deal with municipal debt which is not being paid.

The suburbs with the most non-payers were made known on Thursday. The "top five" are Mamelodi, Atteridgeville, Saulsville, Mahube Valley and the Pretoria CBD.

Non-payers in Mamelodi are altogether R472m behind in payments.

The new scheme involves, amongst others, that residents who pay their debt within 30 days after August 1 will receive a 50% discount.

Business owners will receive a 40% discount for payments within 30 days.

The offer will be valid for six months.

Dr Ernie Jacobson, the ANC council member, said the council has no other choice than to put drastic measures in place.

"I hope the residents will take advantage of this offer."

Plan is ‘irrational’

However, opposition parties are less optimistic.

Rentia Landman of the FF+ labelled the scheme as "irrational and hasty".

"It will only strengthen the culture of non-payment further. The municipality's serious cash-flow problems are now driving them to desperate actions."

DA council member Brandon Topham compared Tshwane's debt with "circus elephants on a stampede".

"The situation is out of control, and this circus is now being forced to kill half its elephants (50%).

"Is it wise to write off the money, and when will this circus have to shut its doors over the matter?"

Professor Hein Redelinghuys, the DA spokesperson on finance, said the only solution is a collections policy which is applied mercilessly.
"Unfortunately Tshwane applies its policy selectively. Electricity which is not paid for should simply be cut off."



- Beeld

Thank you Mark, its a pity I am up to date, on the occasion I actually forgot to pay I found myself in darkness and had to increase my deposit!

scotia dont listen to him the last time he told me it couldnt get beat guess what it got beat