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Tight credit control reduces debt

By unknown | Jun 04, 2007 | COMMENTS [ 0 ]

Ekurhuleni metro has reduced its bad debt by almost R200million through intensified credit control action.

Mayor Duma Nkosi said nonpayment was still a challenge and it hampered delivery of services.

"Provision is made in the operating budget to fund the expected nonpayment," Nkosi said.

During his budget speech in Germiston last week, Nkosi said a collection rate of 95percent had been set as the target for the 2007-08 financial year.

He said the Ekurhuleni metro had also increased the capital budget from R1,2billion to R1,8billion.

"The recovery of outstanding debt from residents and businesses is an increased priority and the target debt collection has increased from 90percent to 95percent" he said.

Nkosi said there were 58696 registered indigents in Ekurhuleni and the metro would develop a more comprehensive assistance programme.

"Our approach is to include the poor and we must take into account the need for a basket of services that bring them into the mainstream."

Nkosi said the maintenance of an aging infrastructure in roads, storm water, public transport and buildings was also a priority. - Sowetan Reporter


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