MANGAUNG METROPOLITAN MUNICIPALITY3 RD DRAFT - CREDIT CONTROL AND DEBT COLLECTION POLICY(APRIL 2012)produce a certificate, on <strong>the</strong> prescribed <strong>for</strong>m, which states that regular payment of rates<strong>and</strong> services ac<strong>co</strong>unts are maintained <strong>and</strong> that <strong>the</strong> ac<strong>co</strong>unt is currently up <strong>to</strong> date.(2) A person who fails <strong>to</strong> provide such a certificate shall be disqualified from <strong>the</strong> tenderingprocess.(3) A person who has an existing arrangement with <strong>the</strong> Municipality <strong>for</strong> <strong>the</strong> payment ofarrears shall be exempted from (1) <strong>and</strong> (2) <strong>to</strong> <strong>the</strong> extent of <strong>the</strong> arrears.30. PRIMA FACIE EVIDENCEA certificate endorsed by <strong>the</strong> municipal manager, reflecting <strong>the</strong> amount due <strong>and</strong> payable <strong>to</strong> <strong>the</strong>Municipality, shall upon mere production <strong>the</strong>reof be accepted by any <strong>co</strong>urt of law as prima facieevidence of <strong>the</strong> indebtedness reflected <strong>the</strong>rein.31. OFFENCES AND PENALTIES(1) Any person who:-(a)(b)(c)(d)(e)(f)fails <strong>to</strong> give <strong>the</strong> access required by a duly authorised representative of <strong>the</strong>Municipality in terms of this policy;obstructs or hinders a duly authorised representative of <strong>the</strong> Municipality in <strong>the</strong>exercise of his or her powers or per<strong>for</strong>mance of functions or duties in terms of thispolicy;unlawfully uses or interferes with municipal equipment or <strong>the</strong> <strong>co</strong>nsumption ofservices supplied <strong>to</strong> any cus<strong>to</strong>mer;tampers with or breaks any seal on a meter or on any equipment belonging <strong>to</strong> <strong>the</strong>Municipality, or causes a meter not <strong>to</strong> register properly <strong>the</strong> service used;fails, or refuses, <strong>to</strong> give a duly authorised representative of <strong>the</strong> Municipality suchin<strong>for</strong>mation as he or she may reasonably require <strong>for</strong> <strong>the</strong> purpose of exercising orper<strong>for</strong>ming his or her powers or functions in terms of this policy, or gives suchrepresentative false or misleading in<strong>for</strong>mation, knowing it <strong>to</strong> be false ormisleading; or<strong>co</strong>ntravenes, or fails <strong>to</strong> <strong>co</strong>mply with, a provision of this policy,shall be guilty of an offence.(2) Upon <strong>co</strong>nviction in a <strong>co</strong>urt, an offender shall be liable <strong>for</strong> a fine not exceeding R60 000,or <strong>to</strong> imprisonment <strong>for</strong> a period not exceeding 12 (twelve) months, or both such a fine<strong>and</strong> imprisonment, <strong>and</strong> may be charged <strong>for</strong> <strong>co</strong>nsumption, as determined by <strong>the</strong> ChiefFinancial Officer, <strong>and</strong> based on average monthly <strong>co</strong>nsumption, or as determined byresolution of <strong>the</strong> Municipality from time <strong>to</strong> time.32. REPORTING ON PERFORMANCE MANAGEMENT(1) The Chief Financial Officer shall report monthly <strong>to</strong> <strong>the</strong> Municipal Manager in a suitable<strong>for</strong>mat <strong>to</strong> enable <strong>the</strong> Municipal Manager <strong>to</strong> report <strong>to</strong> <strong>the</strong> Executive Mayor asSupervisory Authority in terms of section 99 of <strong>the</strong> Systems Act, read with section100(c).31
MANGAUNG METROPOLITAN MUNICIPALITY3 RD DRAFT - CREDIT CONTROL AND DEBT COLLECTION POLICY(APRIL 2012)(2) The Executive Mayor as Supervisory Authority shall, at intervals of three (3) months,report <strong>to</strong> Council as <strong>co</strong>ntemplated in section 99(c) of <strong>the</strong> Systems Act.(3) This report shall <strong>co</strong>ntain particulars on cash <strong>co</strong>llection statistics, showing high-level debtre<strong>co</strong>very in<strong>for</strong>mation including amongst o<strong>the</strong>rs numbers of cus<strong>to</strong>mers, enquiries,arrangements, default arrangements, growth or reduction of arrear debt.(4) Where possible, <strong>the</strong> statistics should ideally be divided in<strong>to</strong> wards, business (<strong>co</strong>mmerce<strong>and</strong> industry), domestic, state, institutional <strong>and</strong> o<strong>the</strong>r such divisions.(5) If in <strong>the</strong> opinion of <strong>the</strong> Chief Financial Officer, <strong>the</strong> Municipality will not achieve cashreceipt in<strong>co</strong>me equivalent of <strong>the</strong> revenue projected in <strong>the</strong> annual budget as approved byCouncil, <strong>the</strong> Chief Financial Officer will report this with motivation <strong>to</strong> <strong>the</strong> MunicipalManager who will, if in agreement with <strong>the</strong> Chief Financial Officer, immediately move <strong>for</strong>a revision of <strong>the</strong> budget ac<strong>co</strong>rding <strong>to</strong> realistically realisable in<strong>co</strong>me levels.33. PROPERTY MANAGEMENT LEASESThe procedure <strong>for</strong> <strong>the</strong> re<strong>co</strong>very of arrears on leases will be in ac<strong>co</strong>rdance with <strong>the</strong> <strong>co</strong>nditions<strong>co</strong>ntained in <strong>the</strong> relevant lease <strong>co</strong>ntract.34. TEMPORARY WORKERSWhere <strong>the</strong> Municipality provides temporary employment <strong>to</strong> members of <strong>the</strong> <strong>co</strong>mmunity who arein arrears with payments <strong>for</strong> municipal rates <strong>and</strong> services <strong>the</strong>y will be required <strong>to</strong> enter in<strong>to</strong> awritten agreement <strong>to</strong> pay 50% of <strong>the</strong>ir gross remuneration <strong>to</strong>wards <strong>the</strong>se arrears of debt.35. POWER OF ENTRY AND INSPECTION(1) For any purpose related <strong>to</strong> <strong>the</strong> implementation or en<strong>for</strong>cement of this policy, <strong>and</strong> at allreasonable times, or in an emergency, a duly authorised representative of <strong>the</strong>Municipality may enter premises, request in<strong>for</strong>mation <strong>and</strong> carry out such inspection orexamination, as he or she may deem necessary:-(a)(b)with regard <strong>to</strong> <strong>the</strong> installation or repair of any meter or service <strong>co</strong>nnection orreticulation; orso as <strong>to</strong> limit, dis<strong>co</strong>ntinue, dis<strong>co</strong>nnect or re<strong>co</strong>nnect <strong>the</strong> provision of any service.(2) If <strong>the</strong> Municipality <strong>co</strong>nsiders it necessary that work be per<strong>for</strong>med <strong>to</strong> enable <strong>the</strong>a<strong>for</strong>estated authorised representative <strong>to</strong> per<strong>for</strong>m a function referred <strong>to</strong> in subsection (1)properly <strong>and</strong> effectively, <strong>the</strong>n it may:-(a)(b)by written notice require <strong>the</strong> owner or occupier of <strong>the</strong> premises, at his or her ownexpense, <strong>to</strong> do specific work within a specified period; orif, in its reasonable opinion, <strong>the</strong> situation is a matter of urgency, <strong>the</strong>n <strong>the</strong>Municipality may do such work, or cause it <strong>to</strong> be done, at <strong>the</strong> expense of <strong>the</strong>owner or occupier, <strong>and</strong> without written notice.(3) If <strong>the</strong> work referred <strong>to</strong> in subsection (2)(b) above is carried out <strong>for</strong> <strong>the</strong> sole purpose ofestablishing whe<strong>the</strong>r a <strong>co</strong>ntravention of this policy has been <strong>co</strong>mmitted, <strong>and</strong> no such<strong>co</strong>ntravention has taken place, <strong>the</strong>n <strong>the</strong> Municipality shall bear <strong>the</strong> expense <strong>co</strong>nnected<strong>the</strong>rewith, <strong>to</strong>ge<strong>the</strong>r with <strong>the</strong> expense of res<strong>to</strong>ring <strong>the</strong> premises <strong>to</strong> its <strong>for</strong>mer <strong>co</strong>ndition.32