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10/6/2012 0 Comments

Municipalities Chasing Their Tails

http://www.fm.co.za/fm/Features/2012/09/18/municipalities---on-the-road-to-nowhere 

"Over the past 18 months, households' debt to municipalities has shot up by almost a third, from R38,3bn to R50,8bn - an increase of R12,5bn. This has pushed SA's municipal debt mountain up to R77,6bn, according to preliminary municipal financial data for the 2011/2012 financial year which ended in June."

This is equivalent to the monies Span may require for its bailout!

The 'jackboot' approach to revenue collection from households in arrears is failing - these households do not have the money.

Sustainability, a multi-faceted phenomenon, requires a new approach beyond Letters of Demands, Summonses and Warrants Of Execution.

Relying solely on these as the last line of defence is both futile and simplistic.

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