Municipality has the right to recover debts
2009-07-23
THE Drakenstein Municipality would like to respond to the letter from Attorney (9 July 2009). It is correct that the municipality extracts money from tenants who purchase electricity for the purpose of recovering debt owed by the owner of the property. According to the Property Rates Policy of Drakenstein Municipality as amended 27 May 2007 and effective on 1 July 2009, regarding recovery of arrear rates from tenants, occupiers and agents: “If an amount due for rates levied in respect of a property is unpaid after the day determined, the municipality may recover the amount in whole or in part from a tenant or occupier of the property. “The amount the municipality might recover from the tenant or occupier of the property is limited to the amount of the rent or other money due and payable by the tenant or occupier to the owner of the property. “Any amount the municipality recovers from the tenant or occupier of the property may be set off by the tenant or occupier, against any money owed by the tenant or occupier to the owner. “The municipality may recover the amount due for rates from an agent of the owner after it has given written notice to that agent or tenant/occupier (limited to the amount of rent received by the agent, less the commission due to that agent or person, subject to the Estate Agents Act, 1976 (Act No. 112 of 1976). “The agent or other person must, on request by the municipality, furnish a written statement specifying all payments for rent on the property received by that agent or person during a period determined by the municipality.” According to the Drakenstein Municipality’s Customer Care, Credit Control and Debt Collection By-Laws as adopted on 22 June 2005, if electricity is bought on a pre-paid basis, a portion or percentage of the amount tendered, determined by Council from time to time, for the buying of pre-paid electricity supply, can be used to offset and recover any outstanding amount in respect of services metered by conventional meters (electricity or water). “The larger amount tendered for the pre-paid electricity can be utilised to recover the outstanding debt on a percentage basis as determined by Council from time to time.” Furthermore account holders are issued with a written notice regarding the disconnections of electricity and/or water supply, where it stipulates the outstanding amount payable to the Municipality. Consumers are further notified by means of telephone communication with regards to the disconnections of the electricity. Blockage of the pre-paid electricity is performed due to the non-payment of long outstanding accounts. Consumers are encouraged to come in to the Municipality to make necessary arrangements on such debts. The Constitutional Court has emphasised that the collection of charges for electricity is an imperative for local government to ensure that it can provide services in a sustainable manner. Services may be disconnected to ensure the collection of arrears. The Municipality is acting within its vested powers and it has a duty to ensure that services are provided in a sustainable manner with efficient recovery of debt. May Carolissen Head: Media & Communications Drakenstein Municipality
More
News
|
