KNYSNA NEWS - Knysna Municipality has approved new measures aimed at easing financial pressure on struggling households, offering qualifying residents the opportunity to write off up to 50% of their municipal debt.
The amended Policy on the Writing-off of Irrecoverable Debt introduces a clear incentive: residents who settle half of their outstanding arrears before 30 June this year can have the remaining 50% written off.
Mayor Thando Matika said the move reflects a more practical and compassionate approach to long-outstanding debt: "This gives many households a realistic chance to reset their accounts and regain financial stability."
The scheme applies only to residential customers and covers debt incurred up to 30 June 2025 that remained unpaid by January.
Qualifying residents must formally apply and then settle 50% of their arrears either as a once-off payment or through a short-term payment plan.
The structured option requires:
- 25% payment of the full outstanding amount paid upfront
- 15% in the following month
- 10% in the third month.
Where time is limited, the balance must be paid within the remaining period before the 30 June deadline.
The municipality stressed that the incentive does not apply to debt incurred after June 2025, and normal credit control measures will continue on newer accounts.
Matika said the decision acknowledges the financial realities many residents face. "We recognise that some households are trapped in cycles of debt that are no longer recoverable. This is about providing relief while encouraging responsible payment going forward."
Residents are encouraged to contact the municipal credit control offices in the old Standard Bank building in Main Street, or in Flamingo Street, Sedgefield, to determine if they qualify and to apply for the programme.
The scheme runs until the end of the current financial year in June.
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