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90.38% Collection Rate Is a Smokescreen

The Ekurhuleni Metro boasts an annual debt collection rate of 90,38%. It looks reassuring on paper, but in practice, it is a smokescreen concealing the true state of affairs. According to the latest report tabled to the Finance Oversight Committee, the collection rate in Etwatwa is only 6,79%, in KwaThema 22,84%, Katlehong 23,72% and Daveyton […]

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The Ekurhuleni Metro boasts an annual debt collection rate of 90,38%. It looks reassuring on paper, but in practice, it is a smokescreen concealing the true state of affairs.

According to the latest report tabled to the Finance Oversight Committee, the collection rate in Etwatwa is only 6,79%, in KwaThema 22,84%, Katlehong 23,72% and Daveyton 43,63%. By contrast, Boksburg collects 95,41%, Kempton Park 96,65% and Edenvale 99%. These enormous discrepancies are glossed over in the Metro’s average percentage.

During the budget process, the Freedom Front Plus (VF Plus) had warned against simply relying on a projected 90% collection rate, and requested that conservative scenarios of 85% and 88% be considered.

The latest figures prove why that warning was justified. A metro cannot function sustainably if collection rates in certain communities are so low that they are simply not financially viable.

It also raises serious questions about fairness. Residents and businesses that faithfully pay their utility bills should not be put under mounting tariff pressure while collection in other areas has collapsed.

The solution is not constantly imposing higher tariffs on paying residents, but area-specific collection and recovery plans with clear monthly targets, accountable officials and regular reporting.

The Freedom Front Plus will keep pressuring the Metro to resolve these issues, before tax-compliant residents are once again asked to shell out even more.

Freedom Front Plus Transport Policy: The FF Plus advocates for improved public transport systems.

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