{"id":6737,"date":"2021-08-04T10:41:29","date_gmt":"2021-08-04T10:41:29","guid":{"rendered":"http:\/\/www.kzncogta.gov.za\/?p=6737"},"modified":"2025-08-06T09:07:39","modified_gmt":"2025-08-06T07:07:39","slug":"cogta-mec-hlomuka-concerned-about-increase-in-consumer-debt-in-kzn-municipalities","status":"publish","type":"post","link":"http:\/\/devtst.kznsshf.gov.za\/kzncogta.gov.za\/index.php\/2021\/08\/04\/cogta-mec-hlomuka-concerned-about-increase-in-consumer-debt-in-kzn-municipalities\/","title":{"rendered":"COGTA MEC HLOMUKA CONCERNED ABOUT INCREASE IN CONSUMER DEBT IN KZN MUNICIPALITIES"},"content":{"rendered":"\n
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KZN MEC for Cooperative Governance and Traditional Affairs (Cogta) Sipho Hlomuka has expressed his concern about the growth in consumer debt in the province\u2019s municipalities. <\/p>\n\n\n\n

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The latest audited figures released by the Cogta indicate that the province\u2019s municipalities saw an increase in consumer debt of R3.47-billion betweeb the 2018\/2019 and 2019\/2020 financial years: the debt grew from R23.8-billion to R27.2-billion during this period, which represents a 14.45% increase.  <\/p>\n\n\n\n

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The increase, according to Hlomuka, is partly due to economic conditions that have deteriorated as a result of the outbreak of the novel coronavirus which has seen households and businesses across the province struggling to pay for municipal services. <\/p>\n\n\n\n

<\/div><\/div><\/div><\/div>\n\n\n\n

Hlomuka believes that the increase in the consumer debt in municipalities places them in a precarious position as they have to continue to provide essential services, such as waste removal, water, electricity and sanitation, in an environment of reduced revenue. <\/p>\n\n\n\n

<\/div><\/div><\/div><\/div>\n\n\n\n

\u201cWe are concerned about the increase in consumer debt and, as a department, we are rolling out measures that are aimed at assisting municipalities in the recovery of debt owed by their consumers,\u201d said Hlomuka.<\/p>\n\n\n\n

<\/div><\/div><\/div><\/div>\n\n\n\n

These measures include: <\/p>\n\n\n\n

<\/div><\/div><\/div><\/div>\n\n\n\n
    \n
  • Supporting municipalities with the reduction in consumer debt through active citizen participation;\u00a0<\/li>\n\n\n\n
  • Indigent support in reconciling registers with Operation Sukuma Sakhe and debtor\u2019s data at selected municipalities;\u00a0<\/li>\n\n\n\n
  • Reconciliation of municipal billing data with debtor\u2019s data, indigent data and the valuation rolls; and\u00a0<\/li>\n\n\n\n
  • Focussed support on government debt through engagement and facilitation in resolving disputes towards payment across government departments and municipalities.<\/li>\n<\/ul>\n\n\n\n
    <\/div><\/div><\/div><\/div>\n\n\n\n

    Hlomuka has also commended municipalities that are proactively dealing with consumer debt by providing debt relief to consumers by getting them to commit to a payment plan with the affected municipality then writing off the interest.<\/p>\n\n\n\n

    <\/div><\/div><\/div><\/div>\n\n\n\n

    Cogta has further identified the following municipalities for support, specifically, in consumer debt relief during the 2021\/2022 financial year:<\/p>\n\n\n\n

    <\/div><\/div><\/div><\/div>\n\n\n\n
      \n
    • Newcastle, Jozini, Umdoni, Nkandla, Ubuhlebezwe, Alfred Duma, Endumeni, Abaqulusi, Umngeni and Mandeni.<\/li>\n<\/ul>\n\n\n\n
      <\/div><\/div><\/div><\/div>\n\n\n\n

      This support will entail crafting a consumer debt recovery plan with the respective municipalities and support with the implementation and monitoring thereof.<\/p>\n\n\n\n

      <\/div><\/div><\/div><\/div>\n\n\n\n

       Issued by the Department of Cooperative Governance and Traditional Affairs<\/em><\/strong><\/p>\n\n\n\n

      <\/p>\n\n\n\n

      <\/p>\n\n\n\n

      Ends.<\/p>\n","protected":false},"excerpt":{"rendered":"

      KZN MEC for Cooperative Governance and Traditional Affairs (Cogta) Sipho Hlomuka has expressed his concern about the growth in consumer 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