Redcliff Municipality embarks on debt collection drive

Staff reporter

Redcliff Municipality has recorded notable improvements in its cash flow following the deployment of eleven debt collectors at the end of March, according to Director of Finance Lindiwe Whata.

The local authority is now planning to recruit an additional ten collectors in a bid to further strengthen revenue collection.

“We have recruited debt collectors on contractual basis. They started end of March and for one month they have been working, we have experienced improvement in terms of cash flow. Although the programme is at infancy stage, maybe we will receive more funds by end of May and June. We have planned to recruit 10 more to make them 21 such that the exercise has impact in the community,” she said.

The debt collection teams began their operations in Redcliff, before moving into Rutendo, with Torwood next in line.

Redcliff Municipality is currently grappling with a massive debt burden, with US$18 million owed to the council. Of this amount, US$13 million is owed by Ziscosteel, while the remainder is owed by residents and various stakeholders. In contrast, the municipality owes US$4 million to creditors.

“The debt collection exercise aims to bridge this gap and pay our creditors. This process has helped in updating our database. As the debt collectors move around the communities, they will be using revenue collection gadgets linked directly to the council’s account,” Whata said.

The municipality hopes that by expanding the team of collectors and leveraging technology, it can improve accountability and ultimately restore financial stability.

 

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