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Credit Control & Debt Collection Policy

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Whereas section 152 (1) (b) of the Constitution of the Republic of South Africa Act 108 of 1996 (‘the Constitution) provides that one of the objects of local government is to ensure that the provision of services to communities occurs in a sustainable manner;

And whereas section 4 (1) (c) of the Local Government: Municipal Systems Act 32 of 2000, as amended (‘the Systems Act’) provides that the Council of a Municipality has the right to finance the affairs of the Municipality by charging fees for services, imposing surcharges on fees, rates on property and, to the extent authorised by national legislation, other taxes, levies and duties;

And whereas section 5 (1) (g), read with subsection (2) (b) of the Systems Act provides that

members of the local community have the right to have access to municipal services which the Municipality provides provided that, where applicable and subject to the policy for indigent customers, pay promptly for services fees, surcharges on fees, other taxes, levies and duties imposed by the Municipality;

And whereas Chapter 9, sections 95, 96, 97, 98, 99 and 100, of the Systems Act provides for

Customer Care Management, Debt Collection responsibility of the Municipality, contents of the policy, by-laws that give effect to the policy, Supervisory authority and Implementing authority, respectively.

Therefore, the Council of Kopanong Local Municipality adopts the following policy regarding Customer Care, Credit Control and Debt Collection.

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  1. This Policy applies to all towns within the defined boundaries of the Kopanong Local Municipality and all customers of these administrations.
  2. The Credit Control and Debt Collection policy, as approved by Council, has been enshrined in a municipal policy in terms of the Systems Act and such Policy will be binding on the public, officials and Councillors of the Kopanong Local Municipality and no interference in the process will be permitted.
  3. The Policy is applicable until such time as it is reviewed and any revisions to the Policy approved by Council.
  4. All acts performed in terms of the above approved Policy, will not be invalidated due to the timing differences between approval and promulgation.
  5. All acts performed as mentioned in the previous paragraph will be ratified with the promulgation of the Municipal Policy.

Objective of The Policy

 The objective of this policy is to:

  1. Focus on all outstanding debt as raised on a customer’s account.
  2. Provide for a uniform Credit control, Debt collection and Indigent Policy in the Kopanong Local Municipality.
  3. Facilitate the implementation of this Policy in the Kopanong Local Municipality.
  4. Promote a culture of good payment habits amongst Kopanong Local Municipality customers and instil a sense of responsibility towards the payment of municipal accounts and reduction of municipal debt.
  5. To ensure that the Council of Kopanong Local Municipality uses innovative, cost effective, efficient and appropriate methods to collect as much of the debt in the shortest possible time without any interference in the process.
  6. To ensure that Kopanong Local Municipality effectively and efficiently deal with defaulters in accordance with the terms and conditions of this Policy.
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