Minister Maciu Nalumisa at the Local Government Municipal Councils CEO Forum

The various municipal councils must set targets for collections of arrears following the waiver of interest rates approved by the Cabinet on Tuesday, says Local Government Minister Maciu Nalumisa.

Prime Minister Sitiveni Rabuka had earlier announced an amnesty period on interest payable from ratepayers in arrears.

The amnesty is intended to facilitate the recovery of principal owed by residential ratepayers.

Nalumisa says municipal councils cannot be complacent about rate collections.

“The council must set targets, they must always know that we must set collection targets of arrears: 50% collection in six months and target 100% collection of arrears by the end of the year. The waiver of interest is like an incentive in a way to come forward and we can waive whatever interest that they have on their respective accounts.” 

The amnesty will be implemented in phases.

Phase 1 will be effective from 1st January to 31st July and based on the collection of rates in Phase 1, Phase 2 will then be effective from 1st August to 31st December this year.

The Ministry of Local Government will also review the compound interest rate set at 11 percent and carry out consultations to ensure the interest levied is fair to ratepayers.