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Honest payers are charged more in SA when others do not pay. The Payment crisis could lead to a revolt from thew honest and working citizens at least on a municipal level. A short exsplain follows below. 1/10
SA municipalities are under pressure from a payment crisis. Even after accounting for Government transfers for free water and lights the total debt that has been outstanding for over 90 days was R123,4 billion for SA municipalities as at September 2018! 2/10
In the last three years R52 billion was impaired. The impairment costs meant that services charges had to be at least 8% higher. Also means older assets are left to be impaired (not printed seperately) - think electricity outages at municipal level. 3/10
The impairments are increasing & it is obviously part of municipalities budget as it is not done.. Outstanding debt is increasing faster than write offs - this is VERY likely to increase. 4/10
Non-payments mean that central government has to transfer more money (I.e. normal tax revenue) Municipalities keep increasing rates to make up for losses from non-payers by increasing charges to those paying 5/10
Service charges increase way above inflation were posible. (mainly water & porperty rate value assesments) making it more difficult to afford for the honest paying citizens and business. Increasing pressure on those that pay. 6/10
Those who do pay are also likely to become less as services become unaffordable. House sales cannot be completed as outstanding rates complicate sales. Infrastrutue is not fixed or upgraded. Payers get more fustrated by power outages & water shortages 7/10
This creates the ideal enviroment for more #paymentrevolts. The honest are left to fend for themselves as services are interupted while anything they complain about say is looked down on by the "clever" ones. Clearly defaulters are a problem the honest pay for! 8/10
The honest need protection from the dishonest non-payers but there is failure of leadership to adress this. I also see many clever people without a clue that they are being held to ramson shoot at people who have had enough. 9/10
For the record this is not about race, poverty. Paying citizens are highjack by lazy leaders who just increase rates and service charges instead of addressing the difficult problems of non-payment. We pay higher taxes, higher charges etc. 10/10
