Calls for extension of eThekwini Municipality's debt relief programme

IOL News

2 days ago

Two legal bodies have written to eThekwini mayor Cyril Xaba requesting an extension of the debt relief programme.
Image: eThekwini Municipality / Facebook
A call has been made for the eThekwini Municipality to extend its special debt relief programme as it has given a major boost to Durban's property sector.
This is the view of professional bodies, including the Black Lawyers Association and the KwaZulu-Natal Legal Practitioners Association. The organisations have written to Mayor Cyril Xaba, urging the extension of the programme, stating that it has addressed serious challenges that had been stifling the property sector.
The Mercury has seen the correspondence from these organisations addressed to Xaba. Their view is shared by ratepayers and opposition parties in the council, who believe the programme has provided much-needed relief for ratepayers. Mayoral spokesperson Mluleki Mntungwa confirmed that it had received the correspondence but said it would not be appropriate to discuss the matter through the media.
The Special Debt Relief Programme was implemented by the municipality during May and June this year. The programme's structure offers a 50% write-off on qualifying arrears upon full settlement of the remaining balance. The Legal Practitioners Association stated that the initiative provided much-needed financial relief to ratepayers across the municipality, particularly those affected by economic hardship and undetected water leaks.
'The programme's structure—offering a 50% write-off on qualifying arrears upon full settlement of the remaining balance—was both pragmatic and compassionate. It enabled many households and businesses to restore their municipal accounts and avoid service interruptions while also promoting responsible payment behaviour.
'As property lawyers, we have seen firsthand how this programme has positively impacted property transactions and ownership stability.
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'Clients who were previously unable to proceed with transfers or obtain clearance certificates due to arrears were able to regularise their accounts, thereby unlocking stalled transactions and reducing legal disputes. It has contributed to smoother conveyancing processes and improved confidence in municipal cooperation,' said a representative from the Legal Practitioners Association.
'In light of its success and the ongoing financial challenges faced by many residents, we respectfully request that the municipality consider extending the Special Debt Relief Programme for a further period of three months. This extension would allow greater exposure of the relief to a wider public audience and ensure that more ratepayers—especially those who may have missed the initial window—can benefit from this important initiative.
'We also kindly request that, should the programme be extended, the municipality publish clear and comprehensive information regarding the eligibility criteria and required documentation. This should include specific guidance for: Individuals applying for relief
Companies seeking to regularise their accounts
Deceased estates, where executors or legal representatives may need to act on behalf of the estate
The Black Lawyers Association confirmed they have written to the mayor and echoed the same sentiment in their letter.
'This intervention has made a meaningful difference for numerous residents and businesses, many of whom have faced financial strain due to prevailing economic pressures and undetected utility losses.
'By providing an opportunity to write off 50% on qualifying arrears upon settlement of the outstanding balance, the municipality demonstrated not only fiscal sensitivity but also a proactive commitment to social responsibility. Further, this demonstrates that we are led by a council which cares!'
'As legal professionals—many of whom work extensively in property law and municipal compliance—we have witnessed the tangible benefits of the initiative.
'Clients who had long been unable to finalise property transfers or access services due to account arrears were finally able to bring their accounts up to date. This has supported both the local property market and the broader legal ecosystem, fostering smoother transactional processes and increased legal certainty.'
It urged the municipality to consider extending the programme for an additional four months.
Asked about whether an extension should be considered, eThekwini Ratepayers and Residents Association president Ish Prahladh said: 'Actually, yes, it has had a positive impact on the property and business industry. Remember, all ratepayers and businesses are cash-strapped owing to our economy. It would definitely be a big help if it was extended.'
IFP councillor Jonathan Annipen said the party fully supported the call to extend the programme.
'We believe this initiative has proven effective in addressing long-standing challenges faced by ratepayers and has helped to stabilise the property industry. Last month, the IFP submitted a motion to the council calling for the reinstatement of this programme. Unfortunately, this was rejected by the Speaker of council.