Nelson Mandela Bay Municipality’s MMC for Budget & Treasury, Cllr Ngqisha, held a press briefing at the Fire Station to announce a proposed R2.6 billion municipal debt write-off is a bold step.
This initiative will benefit homeowners with properties valued between R1 – R500,000, particularly in communities like New Brighton, KwaLanga, and Helenvale, who’ve been burdened by high water tariffs since 2016.
Cllr Ngqisha: “This progressive move is about restoring dignity and easing the pressure on our people, while addressing the Municipality’s R17 billion debt challenge.”
The Councillors Full Address:
Historic Water Debt Relief for the Hardworking People of Nelson Mandela Bay
Today marks a watershed moment in the financial and social life of our Metro. As the Member of the Mayoral Committee (MMC) for Budget and Treasury, I stand before you to deliver news that is not only fiscally responsible, but socially transformative milestone for working-class dignity and economic redress.
We are announcing a historic debt write-off of R2.6 billion, targeting individual household accounts tied to properties valued between R1 and R550,000. This is not just a technical financial exercise. It is a bold and compassionate intervention in the lives of thousands of families teachers, nurses, retail workers, clerks, municipal staff, and countless others who have been carrying the burden of unaffordable water debt, most of which arose from emergency drought tariffs imposed during times of crisis.
Let us be clear: this is not a bailout of those who refuse to pay. It is a lifeline to those who could not pay those who were caught in the crossfire of environmental disaster, tariff policy, and socio-economic inequality. These are residents who were pushed into arrears by the sheer cost of surviving during a period of historic drought, compounded by tariff increases required under Government Gazette No. 39963 and the Directive from the Department of Water and Sanitation dated 7 November 2016.
While the Nelson Mandela Bay Municipality had previously approved a R1.139 million write-off for properties below R130,000, that initiative, though commendable, fell short of addressing the broader crisis. It became apparent that many families, especially those in the middle-income bracket, were excluded by virtue of narrowly exceeding the property value threshold.
As MMC for Budget and Treasury, I took it upon myself to ensure that this gap was addressed. I saw to it that this item was brought before our Standing Committee not only as a matter of financial housekeeping, but as a matter of justice. The aim was clear: to relieve the burden on our hardworking middle class, the backbone of our city’s economy, who are often left out of state support mechanisms.
Today, we can say with pride and certainty that we are correcting that exclusion. We are extending real, material relief to households with properties valued up to R550,000 acknowledging their struggle, respecting their dignity, and restoring their capacity to engage with the Municipality in good faith.
And let it also be stated, without hesitation, that this kind of people-centered governance is what the inclusion of the Economic Freedom Fighters (EFF) in the Government of Local Unity has made possible. We made a commitment that where we govern or co-govern, we will deliver redress to the people, challenge anti-poor policy practices, and restore power to our communities. This item reflects that commitment in action. It is not a theory. It is R2.6 billion returned to the people in dignity, in hope, and in opportunity.
But we are not stopping here.
This initiative is accompanied by an aggressive and targeted debt collection campaign to recover arrears where appropriate. The outstanding debt book will be allocated to various legal firms on our municipal panel through the Office of the Chief Operating Officer (COO), ensuring proper and ethical recovery while prioritizing fairness and compliance.
Residents whose accounts are still in arrears are urged to come forward. Let us engage. Let us find solutions. Let us work together. Relief is available, and assistance programmes have been put in place to restructure debts and prevent further hardship.
This is about building a Municipality that reflects the values of compassion, accountability, and inclusion. It is about ensuring that our books are clean, yesbut also that our hearts are open.
In conclusion, I want to say this clearly: this R2.6 billion household water debt write-off is a victory for the people. It is proof that responsive, people-driven governance is possible. It is proof that when progressive forces like the EFF are brought into the corridors of decision-making, we can rewrite the script one that prioritizes the needs of the poor, the working class, and the excluded.
We are not just managing a city – we are transforming it.
I thank you.
