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R160 Million Write Off – Fair or Not?

By

Dear Editor

The DA in the Buffalo City Municipality (BCM) has submitted a motion requesting the rescindment of an unfair council resolution to write off millions of rands of debt regarding three companies in the Metro.

The DA’s notice of rescission was submitted to the office of the Speaker on 16 May 2023 and is set to be tabled at a council meeting tomorrow, 31 May 2023.

In December last year the ANC-led council approved the request for debt settlement proposals submitted by three companies, whose combined debt amounted to R160 million.

Council resolved to write off R28,2 million of the R75,5 million owed by SKG Properties, and R29 million of the R80,1 million owed to the municipality by Rebosis Property Fund, as well as debt owed by a third company.

The DA believes that these write-offs fly in the face of customers in the business community who have diligently found ways to pay what was owed to the municipality despite adverse trading conditions and the negative impact of Covid 19 and loadshedding.

The massive write-offs should have gone the route of the debt incentive schemes that all others have to enter into with the municipality.

Across the municipality other businesses and ratepayers are also struggling but still find a way to pay their accounts, but are not afforded the same leniency as these three debtors that owe the municipality millons of rands.

Consumers who struggled and even sold properties and other assets to service their debt to the municipality, now see others, who did not do so having their debt written off, highlighting the unfair nature of the write-offs.

By writing off the substantial debt of these debtors, the principle of fairness and consistency have been materially disregarded to the detriment of other business customers.

The DA will never stop fighting for the rights of the residents of Buffalo City.

Regards

Cllr Sue Bentley
DA Buffalo City Caucus Leader

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