The DA in Polokwane has taken a stand against a report requesting the writing off of debt incurred from interest in arrears by government departments or organs of state during in Monday’s council sitting.
The ANC-led Mayoral Committee introduced an item wherein interest amounting R39,6 million on outstanding debt incurred by government departments is written off. The Executive Mayor argued this would encourage departments to pay their accounts.
Councillor Franco Marx voiced the DA’s opposition to this item stating that government departments must set an example to residents by paying their accounts regularly and timeously. The DA stance was echoed by other opposition parties.
The meeting was adjourned so that alternative recommendations could be considered between the relevant political parties represented in the council.
The DA proposed that each department should be dealt with on a case-by-case basis and called for an amendment to the recommendations informing the relevant departments that if they pay the outstanding capital amounts by a specific date, they can apply in writing to write off the interest or a portion thereof. The report by the Municipality containing all this information must be submitted to the council so that each department’s application for discount/interest written off is considered on a case-by-case basis.