KNYSNA NEWS - The financial woes of our municipality could be due, in part, to failing to effectively collect monies due for services delivered.

In the audit committee's May report – which was presented along with its June report at a mayoral committee meeting on Thursday, July 27 – it states that half of the municipality’s net debtors are outstanding for more than a year and 77% for more than 60 days.

This indicates that collection and follow-up methods being implemented were inadequate and must be addressed. 

To emphasise the seriousness of the situation, it was mentioned in another item on the agenda that a large construction firm has an arrear electricity account totalling almost R800 000. 

Queries to the municipality as to how such a situation arises, especially given the situation that domestic consumers face disconnection upon nonpayment, have gone unanswered.

In the June report the committee identifies several critical issues surrounding the municipality's prepaid electricity system. 

Among these is the fact that no valid service level agreement exists with the service provider Itron and cash management procedures are not being adhered to. 

Comment requested from the municipality as to what remedies they intend implementing have gone unanswered. 

ARTICLE:  JULIE JEFFERYS, KNYSNA-PLETT HERALD CORRESPONDENT

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