Council is currently considering the bids for a new service provider to collect the huge debts owed to the Makhado Municipality.

"The existing service provider’s contract has expired and new service providers will be appointed shortly. The bids for a new service provider closed on June 15 and an adjudication committee will consider the bids to make an appointment by no later than August 1," said municipal manager Ms Faith Muthambi this week.

Muthambi said that the rumour that the previous service provider was paid R1,2 million for their services, was not true.

"In terms of the agreement with the service provider, commission is paid on the amount collected on the basis of ‘no collection – no pay’. The exact amount which the service provider collected will be disclosed as soon as the financial year-end system has run. It will also reflect on the commission that was paid to the service provider and can be made available upon year-end´s closing," stated Muthambi.

The auditor general’s report on Council’s 2005/6 financial statements, ending in June 2006, stated that, although a credit control policy was approved by Council, there was no firm enforcement nor effective implementation by management.

"This resulted in the balance of Council’s debtors at that stage increasing by about R14,6 million in 2006, representing an increase of 29,9% since 2005," the report stated.