The DA in eThekwini welcomes the long overdue proposal by the Treasury Department for council to consider writing-off debt accumulated by deceased or insolvent estates.
This is against the backdrop of debt attracting interest whilst also leading to deteriorating conditions, often leading to abandonment and illegal occupation by vagrants or the homeless and subsequent property devaluation.
What started as a proposal with an exclusive focus on debt totaling R 944 million accumulated within the township areas, was by virtue of clarity from the DA benches, amended to include all properties that meet the criteria across the entire city, albeit with an initial threshold value of R 1 million.
This in an effort to afford beneficiaries, occupants or executors the ability to sell or enter into contracts with the municipality off a clean slate, as opposed to being unable to contract, afford or distort the municipality’s finances on what is impossible to recover.
The initiative is guided by certain terms and conditions that include:
– it remains exclusively applicable to residential dwellings and specifically excludes businesses;
– debt has to be older than 24 months;
– there has to be a surviving beneficiary to take over after the write-off so as to eliminate a reemergence of the debt accumulation;
– where next of kin are minors and/or indigent, that this be catered for through the indigent policy
Where however there is no next of kin willing to take over the responsibility of paying for municipal services, or an executor hasn’t been appointed, the council will reserve the right to terminate municipal services to avoid usage and accrual of debt.
Whilst welcoming the revised R1 million threshold, the DA requested that this be revisited in the midyear, instead proposing that it be increased to include properties valued up to R 1.5 million.
This will open both real estate and income opportunities that would benefit the city in the higher market segment.