Over R1 billion in debt owed to the Newcastle Municipality

Estimated reading time: 2 minutes

Approximately R1.4 billion in municipal bills is owed to the Newcastle Municipality, with only 87% of Newcastillians paying their monthly accounts.

With this colossal sum of money owed to the local municipality, and bearing in mind the current financial status of the government entity, what steps are being taken to resolve this glaring issue?

Speaking on behalf of the government entity, Newcastle Mayor, Cllr Xolani Dube explained that the municipality is launching an incentive scheme to encourage people to pay their municipal bills. He further states, “Those owing monies to the Municipality, if they pay 50% of their bill, they will have the other 50% written off. If they come and set up a debit order with the Municipality to pay their bill, they can have up to 75% of their bill written off.”

Through this initiative, Cllr Dube is hoping that people will come forward and start paying their bills, thereby, creating a new culture in town—one where everyone contributes to their town. 

While acknowledging that there are indigent residents who cannot afford to foot their entire municipal bill and jointly, there are specific community members who inherited large municipal debts—Cllr Dube did however say, there were those who are taking advantage of the system. Therefore, “Indigent people are encouraged to come to the municipality and register. But for those who do not qualify for indigent status and are not paying their bills, there will be repercussions,” warned the Mayor.

With the Newcastle Municipality now looking at creative steps to reclaim outstanding debts, what are your thoughts on people not paying their bills or abusing the system in pressing times like these? 

Share your views in the comment section below.

3 thoughts on “Over R1 billion in debt owed to the Newcastle Municipality

  1. How is it possible to give 50% or 75%off on bills. If we’re not paying you will switch off the power. Where is the democratic rights now? In all societies, all cultures, there are poor people. Then be fare to eveybody in all areas. People are stealing power illegally in certain areas. Are you as municipalty going to stop it, or will you just drop it again. If you want electricity, you have to pay for it.

  2. This non paying of rates by NN community should be blamed entirely to the prev mayor Dr N Mahlaba and his adminstration, lot of ppl in the location were paying rates but he then arbitrarily increased the property rates without proper evaluation an d zero consultations as a results rates were up by more than 200% then ppl couldnt afford it anymore, Mahlaba, prev CFO and prev MM should all be blamed for this

  3. The previous administration did a lot of damage, the 2019 newcastle shutdown was an indication that the newcastle municipality was not willing to listen to residents even the meeting that was held on the Sunday afternoon days after the shutdown was just a platform for the than mayor to insult and display arrogance to the residents and businesses located and paying rates in Newcastle. Further more revenue was lost when 223 rate payers were dismissed by the very same mayor and his administration. But the current administration might be following in those foot steps as well they made promises to sort problems within the municipality but on the last hour they renegade on a proposal to reinstate the worker’s that were unfairly dismissed funny enough they are aware that the employees were unfairly dismissed but they renegade without any explanation and they mayor is not hornering the promise to meet with the employees. It’s becoming clearer that there is no political party that can be trusted.

Leave a Reply

Your email address will not be published.