Notwithstanding the above, the municipality or its authorised officials will be under no obligation to write-off any debt and will always retain sole discretion to do so. 7.5 Inactive accounts 7.5.1 Outstanding amounts of less than R3 000.00 These debts are written off as bad debt after a final demand has been issued, as the collection cost does not warrant proceeding with further legal action. 7.5.2 Outstanding amount greater than R3 000.00 If older than 90 days, these debts are referred to external debtor collectors for summonsing and further legal action if the levy payer has not responded to a final demand for payment. The collectors will advise the Municipality accordingly should the debt prove impossible to recover and these matters will be referred to Council for write off 7.6 Estate Account Collection 7.6.1 Estate with legal status The accounts of debtors who are declared insolvent, or are under administration or deceased are dealt with according to normal legal practices by collection staff of the Municipality. Unsuccessful claim must be submitted to Council for approval to be written off. 7.6.2 Estates without formalised legal status In cases where the head of a household has died without leaving a will indicating to whom ownership of the family residence is to be transferred upon the event of his or her death OR has abandoned his or her family to fend for themselves. As these exceptions are not provided for in the normal legal practice, the following process will be followed in such cases: The remaining family must report the situation to the municipality’s collection office, who will require the relevant documentation to be obtained by the family, i.e. a death certificate and an order of the local magistrate allocating right of ownership to a member of the surviving family in the case of a deceased estate OR an order of the local magistrate allocating right of ownership to a member of the abandoned family. In all these cases, extension for the payment of the arrears as at the date of notification will be given by the debt of the municipality. Disconnected electricity will also be reconnected and the remaining family will be expected to pay all amounts levied on monthly current accounts in excess of the
Arrangement for payment of arrears by debtors of lease/sales agreement may not exceed 24 months. Tenants may vacate the municipality’s premises anytime, therefore arrangement over an extended period increases the risk of not recovering the debt. For all accounts that are more than 60 days in arrears, a payment demand notice is served, advising debtors to either pay or to make the necessary arrangements for payment within 14 days at the municipality. If the debtor does not respond within 14 days, the account is handed over to the appointed debt collector. The debt collector can negotiate affordable arrangement plan for repayment with such debtors. Non-compliance with such arrangements will lead to the eventual eviction of such tenant. Upon making an arrangements with debtors, debtors are informed that the monthly arrangement amount must be paid in addition to the monthly (current) levy. Restriction of services may be applied for arrear rental. Sales Accounts Accounts are followed up by the Finance Department with the Legal Services Department in order to establish progress with the finalisation of each agreement of sale between municipality and the buyer, while monthly statement for the balance is send to the debtor. The Finance Department will not certify the transfer of ownership to the purchaser unless the full purchase price has been paid. Fraud, Tempering, Illegal Connection and Other Criminal Activities Any person who undertakes or allows or causes any other person to undertake an illegal connection will be guilty of an offence. The municipality will immediately disconnect any illegal connection and remove the wiring, piping or other equipment or installation relating to an illegal connection without prior notice. The municipality shall not supply water/electricity to a customer who is found guilty of or who has admitted that fraud, theft or any other criminal action involving the use of these services existed until the total costs, penalties (in terms of municipal policies