Consumer debt in City of Tshwane higher in 2017 than in previous year
Consumer debt in the City of Tshwane has increased by R1.6bn to R10.2bn in the 2016-17 financial year.Almost half of the R10.2bn is considered irrecoverable.The debt is one of the major concerns that the city is facing after being able to retain an unqualified audit opinion from the auditor-general in its first year under the DA."The increase in consumer debt remains a serious concern for the city…," Tshwane finance member of the mayoral committee Mare-Lise Fourie said. "The difficult economic climate and the rise in unemployment levels have had an impact on payment levels. Actions taken in terms of credit control policy also were not fully effective and these factors resulted in the average collection rate on current billing regressing to 90.4% compared to 93.1% in 2015-16."Fourie added: "Nonpayment is across the board. It is not restricted to certain places. Don’t think that nonpayment is restricted to townships. It is everywhere."The city reduced its unauthorised expenditure from...
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