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Bad-Debt-write-off-Policy-2026-2027.pdf

Tsantsabane Local MunicipalityRef: https://tsantsabane.gov.za/wp-content/uploads/2025/11/Bad-Debt-write-off-Policy-2026-2027.pdf

Official source

Source domain: tsantsabane.gov.za

Collected on 13 July 2026

Always confirm details on the official source before acting.

Our copy (archived 20 July 2026)Official source

What this means

This document is the Tsantsabane Local Municipality Bad Debt Write-Off Policy for the 2026/27 financial period. It sets out definitions and a required step-by-step process for attempting credit control, tracing debtors, monitoring estate notices, and preventing prescription before any debt can be written off. It specifies general and specific circumstances in which debts may be considered irrecoverable (including prescribed debts, finalized deceased estates, untraceable debtors, lack of source documentation, non-economical recovery, certain property/rates rules, metered services, sundry debts, indigent household concessions, and special RDP allocation cases). The policy also provides for delegated authority for write-offs up to R5,000 by the Accounting Officer, mandatory credit bureau listing for certain categories, and annual reporting to Council after 30 June for noting and approval.

Facts

Reference

https://tsantsabane.gov.za/wp-content/uploads/2025/11/Bad-Debt-write-off-Policy-2026-2027.pdf

Amounts

R 5

Parties

Delegated authority, RDP allocation cases). The policy also provides

Key Takeaways

  • Document: Tsantsabane Local Municipality Bad Debt Write Off Policy 2026/27
  • Purpose: framework to limit circumstances, decide whether to write off debts, and set procedures
  • Pre-write-off steps: execute Credit Control and Debt Collection Policy; check Government Gazette estate notices; trace debtors using reasonable steps; prevent prescription via court processes and Prescription Act rules
  • Prescription Act periods: 30 years (mortgage bond/judgment/tax/state mining profits); 15 years (state advance/loan or sale/lease of land); 6 years (bill of exchange/negotiable instrument/notaries contract); 3 years (all other debts)
  • Write-off general conditions include: debts prescribed; deceased estates finalized with no recovery from heirs; untraceable debtors; no source documentation; debtor emigrated leaving no attachable assets; not economical to pursue
  • Rates/property debts: not written off except when property disposed in liquidation and proceeds do not cover the debt (then write off irrecoverable balance)
  • Delegated authority: Accounting Officer may write off debt amounts of R5,000 or less if all reasonable recovery steps were taken and debt is irrecoverable
  • Reporting: after 30 June each year (or more regularly if requested), Accounting Officer reports to Council for noting (delegated write-offs) and for consideration (other believed irrecoverable debts); Council approves if satisfied with reasons
  • Credit bureau listing required for written-off debtors: untraceable, insolvent, emigration
  • Bad debts recovered: Council approval does not stop recovery actions; recovered amounts recorded as recovered in Council financial records
  • Tsantsabane Local Municipality
  • Council (Tsantsabane Municipality)
  • Accounting Officer (Municipal Manager appointed in terms of Section 82 of the Municipal Structures Act, 1998 (Act No. 117 of 1998))
  • Municipal Manager
  • Department of Home Affairs
  • Vehicle Registration Authorities
  • Credit Bureaus
  • Department LED and Planning
  • Officials/colleagues at debtor’s last place of employment
  • Government Gazette
  • Prescription Act, 1969 (Act No. 68 of 1969)
  • Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000)
  • Municipal Structures Act, 1998 (Act No. 117 of 1998)