eThekwini to write off debts of deceased estates
eThekwini Municipality says it will be writing off the debts of deceased estates valued under R1 million.
Mayor Cyril Xaba told a full council meeting on Thursday that the amount owed by the deceased estates where executors were not appointed is over R900 million.
"The collection of revenue from the deceased estate has proved to be a challenge, and that, in some cases, the city has had to suffer financial losses in its attempt to recover."
Xaba said the move is in line with the Municipal Finance Management Act and the city's debt collection policies to provide relief to struggling families.
READ: KZN police target ‘chaotic’ hijacked building in Durban CBD
"The proposed write-off must take place under the following conditions: The deceased and insolvent estate must be for residential household, not business. The value of the property in question must not exceed R1 million.
"Debt involved to be older than 24 months. Availability of surviving beneficiary with a legal title to represent the estate to avoid re-emergence of debt.
"This move will allow those who are occupying the property with the legal title to come forward and make the necessary payment arrangement with the city.
"As a result of this decision, the municipality is of the view that it will bring a sigh of relief to many struggling families. Some have had to connect to our services illegally, occasioning further losses to the city and opening themselves to criminal prosecution."
Find us on social media
Follow the ECR Newswatch WhatsApp channel here
