Staff Reporter
The Municipality of Redcliff says it has improved its revenue collection efficiency and intensified debt recovery measures by handing over most corporate debtors to its lawyers in a bid to strengthen its financial position.
Speaking to journalists after a full council meeting, Finance Director Lindiwe Hwata said council’s collection efficiency in residential wards had increased from 20 percent to 30 percent, although unpaid bills by corporate customers remain a significant challenge.
“We have handed over most of the corporate debtors to our lawyers. Some have responded to the demand letters, while others have not,” Hwata said.
She said the local authority continues to employ between 15 and 20 debt collectors whose contracts are renewed every three months to support revenue collection efforts.
According to Hwata, the debt collection programme has produced encouraging results and will continue as council seeks to improve revenue inflows and meet minimum service delivery standards.
Hwata said the municipality currently owes approximately US$6 million to its creditors, while debtors owe the local authority about US$24 million.
She said council remains committed to pursuing outstanding debts while implementing measures aimed at improving revenue collection to support service delivery.
