The Freedom Front Plus (VF Plus) is strongly opposed to the proposal by the AbaQulusi Local Municipality (Louwsburg, Vryheid) that qualifying consumers should pay only 30% of their outstanding municipal debt while 70% is written off.
According to the Municipality’s own memorandum, total outstanding consumer debt stands at nearly R642 million, of which approximately R564 million is older than 60 days.
The Municipality hopes to recover R169 million and write off R395 million. This means almost R400 million in potentially recoverable debt is forfeited for a relatively small cash amount.
The real question is: How much of the R564 million could have been recovered through proper credit control, payment arrangements and legal action without forfeiting 70%?
Outstanding debt has climbed from about R273 million in 2021/22 to approximately R618 million in 2025/26 – an increase of more than 120%. A once-off scrapping of debt treats the symptom, not the cause.
The proposal creates an unfair situation. Residents who have paid their bills faithfully receive no benefit, while those with large arrears stand to gain a massive discount. This sends the wrong message and creates the expectation that non-payment could be rewarded.
The Freedom Front Plus is not opposed to offering targeted assistance to truly vulnerable households. A blanket 70% write-off without a proper analysis of the debt book is, however, unacceptable. Council should first be informed of who owes what, how old the debt is, which portion is genuinely irrecoverable, and what collection steps have already been taken.
The National Treasury (NT) recently withheld portions of AbaQulusi’s equitable share allocations owing to poor financial management. Against this backdrop, a R395 million write-off should not be hastily approved.
The Freedom Front Plus implores the Council to reject the proposed scheme in its current form. The Municipality first needs to demonstrate that reasonable collection mechanisms have been exhausted, clearly indicate who stands to benefit, and present a credible plan to prevent the same crisis from recurring.
AbaQulusi needs financial discipline, effective collection and accountability – not more debt amnesty.
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