Writing off of Irrecoverable Debt Policy (1 July 2024)
PRINCIPLES AND POLICY ON THE WRITING OFF OF IRRECOVERABLE DEBT – 1 July 2024
1.1 To ensure that household consumers with no or lower income are not denied a reasonable service and that the Municipality is not financially burdened with non-payment of services, the Council of Mangaung Municipality approved a revised Indigent Policy.
1.2 However, the Council is faced with a significant amount of outstanding debt and the continuous defaulting by certain consumers who can afford to pay for services. To deal with this, the Council also approved a revised Credit Control and Debt Collection Policy.
1.3 Despite strict enforcement of the above policies, Council will continuously be confronted by circumstances requiring the possible write-off of irrecoverable debt. To allow this the approved Credit Control and Debt Collection Policy, inter alia, stipulated that:-
1.3.1 The Municipal Manager must establish effective administrative mechanisms, processes, and procedures to collect money that is due and payable to the Municipality.
1.4 In addition, the policy further stipulates that:-
1.4.1 Council should adopt and implement a write off policy to formalise the processes for writing off such debts.