Press Statement by Robert Dlamini: DA Caucus Leader City of Mbombela
- The municipality is charging R169 for letters sent to owing residents.
- This decision puts strain on struggling households.
- We have asked the Executive Mayor to review this decision.
The DA in the City of Mbombela has urged the Executive Mayor, Sibongile Makushe-Mazibuko, to closely examine Mbombela’s 33% unemployment rate, amid the municipality’s decision to charge R169 for issuing warning letters to residents who are defaulting on their municipal tariff accounts.
Recently, the municipality adopted a system whereby residents are charged R169 for letters sent to their households. These letters detail the household’s utility debt to the municipality.
This administrative fee is being applied indiscriminately, often for basic automated communications, functioning as an abusive, punitive revenue-generation mechanism rather than a legitimate and cost-reflective recovery fee.
According to the municipality’s latest annual report, the lower-bound poverty line increased from 39.7% in 2016 to 43.4 % in 2022. Alarmingly, Mbombela is ranked eighth in the province in terms of the lower-bound poverty rate.
Section 74(2)(d) of the Local Government: Municipal Systems Act 32 of 2000 (MSA) explicitly dictates that municipal tariffs and fees must reflect the actual costs reasonably associated with rendering the specific services.
Levying exorbitant and non-cost-reflective fees on financially stressed residents directly undermines the spirit of citizen-centric local governance. The DA is cognisant of the fact that revenue generation is a critical aspect in local governance. However, residents must not be subjected to unscrupulous revenue generation mechanisms.
Section 97(1)(c) of the Municipal Systems Act requires the municipality’s Credit Control and Debt Collection Policy to be just, equitable, and transparent regarding the conditions and real costs of service termination notices.
It must be noted that modern financial governance allows for the immediate migration from costly physical paper delivery to digital communication channels.
The DA will continue fighting for fair tariff rates. Therefore, we expect Mayor Makushe-Mazibuko to act urgently and work with the administration to find a way in which notices for residents fully satisfy the municipality’s legal obligation to warn customers without causing them further unbudgeted financial prejudice.