OCAN Flash POLL

Write-off of Irrecoverable Consumer Debt

Irrecoverable consumer debt refers to the inability or unwillingness of a ratepayer or service user to pay for services such as water, electricity, refuse removal, or property rates for more than 90 days.

The Municipal Finance Management Act (MFMA) allows a municipality to write-off irrecoverable consumer debt, having applied its Credit Control and Debt Collection policy.

At an Ordinary Council Meeting of the Overstrand Municipality held on 29 October 2025, Council resolved to write-off irrecoverable consumer debt to the value of almost R54 million for the 2024|25 financial year. This amount exceeds the budgeted amount by R34 million.

During the same meeting, it was recommended that revenue losses relating to Water (R6 736 806) and Electricity (R8 089 824) during the same financial year be written off. The combined write-off amounts to R68 485 010.

The sharp increase in consumer debt write-offs has raised questions and sparked debate.

Trend Analysis

Notes

  • Percentages indicate increase (or decrease) from previous financial year
  • Significant increase of 1042.51% from 2019|20 to 2025|26
  • Alarming trajectory

Source

  • Audited Annual Financial Statements
  • Decision by OM-Council (29 October 2025)

Flash Poll Results

Statement

No

Yes

1. The R54 million debt write-off is a wise business decision

92%

8%

2. The write-off demonstrates compassionate and community-centred governance

82%

18%

3. The write-off is an attempt by Council to avoid social unrest

9%

91%

4. The write-off will have unintended consequences

8%

92%

5. Action should be taken against leaders of political parties who threaten to destabilise the Overstrand

5%

95%

6. Rates and tariffs should be affordable for all consumer categories

2%

98%

Notes

  • The poll was conducted via social media platforms during a 72 – hour timeframe (7 – 10 November 2025)
  • 1 197 ratepayers and residents across all 14 municipal wards participated
  • Supporting detail will be captured in a summary report (to be shared)