Ekurhuleni writes off R2.24bn in unpaid bills

The City of Ekurhuleni has written off R2.24bn in old unpaid rates and service bills after repeated failed attempts to collect what they were owed from residents.

The debt relates to indigent households as well as those deemed indigent that used municipal services beyond the free basic allocation, which includes 10,000 kilolitres of water and sanitation, 50 kilowatts of electricity, free waste collection, and a 100% rebate on property valuation each month. The debt was accumulated between July and December 2025.

Ekurhuleni finance MMC Jongizizwe Dlabathi told Sowetan the decision to write off the debt was not ideal but necessary after the city exhausted its credit control processes.

“The write-off has been done in line with legislation and the city’s existing debt write-off policy,” he said. “Households are consuming services that must be paid for, and we follow through with credit control measures to collect what is owed to the city.”

Dlabathi said in some cases the city realised the money was no longer collectable after repeated attempts to recover it.

“After all efforts have been made and the debt has been outstanding for a long time, we come to the realisation that some of the amounts due to the city are uncollectable. It is in that context that we proceed with a debt write-off.”

Dlabathi said the move also provides relief to struggling households, although it represents a loss of revenue for the municipality.

“We do not promote a culture of debt write-offs, but we also cannot sit with a debtor’s book that is too large when we know that the money cannot be collected. This helps give a more realistic reflection of the city’s debtors’ book and provides relief to affected households,” he said.

Dlabathi said before writing off debt, the city first attempts to recover outstanding payments through credit control measures such as power disconnection notices, blocking prepaid meters, and reducing water pressure.

“If residents still fail to settle their accounts after these steps, the municipality may start the debt write-off process.”

Dlabathi said the programme mainly targeted indigent and deemed indigent households, who often struggle to pay for services.

Deemed indigent households are those living in properties valued at less than R600,000, while indigent households are residents who apply for assistance because their disposable income is below the threshold of two state pensions.

“These households receive free basic services, including water, electricity, and waste collection. However, if they consume beyond the free allocation, they are expected to pay for the additional usage,” Dlabathi said.

He added that the city is monitoring whether households benefiting from the programme improve their payment behaviour.

“Being registered as an indigent household does not mean residents are exempt from paying municipal bills,” he said.

Dlabathi said Ekurhuleni is also reviewing its indigent policy after noticing that some households consume services far beyond the free allocation.

“We are assessing whether the current free supply is sufficient,” Dlabathi said.

He added that the recent protests in Tembisa, were partly linked to the municipality’s credit control measures.

Sowetan