4 minute read
Kumyolz Investments Debt Collection Enhancement Strategies for Municipalities
Kumyolz is a trusted revenue enhancement service provider committed to the growth, financial stability, and advancement of municipal and other clients.
KUMYOLZ MD YOLANDA MADIKIZELA
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talks about her company’s debt collection enhancement strategies for municipalities
Many municipalities are collectively owed billions of rands by defaulting residents, businesses and other entities. A wellfunctioning revenue administration, of which credit control and debt collection is a vital component, is essential to the financial health of any municipality.
Municipal Focus asked Yolanda Madikizela, Managing Director of Kumyolz Investments, about their service offerings to municipalities and how they can strengthen and improve this vital function.
MF: Briefly describe how Kumyolz Investments came about, what services you provide, and which sectors you service?
After identifying a special need for a Municipal Oriented Debt Collection service for municipalities in South Africa, I established Kumyolz Investments in 2013 as a fully black owned company to fill this void. Our primary goal in business is to ensure that we develop a debt collection strategy and process that can be embedded into the credit control management plan of the institution, and we ensure that we deliver to that objective. We regard this focus as a strategic investment for the municipality.
MF: For all South African municipalities, rigorous debt collection is necessary, and revenue and debt management need strategic and systematic interventions. Which innovative ways have you adopted to improve this that you can deliver to your municipal clients?
In the implementation of a debt collection plan, we do not rely on the normal ways of collection as we believe that changes in municipal revenue collection are rgently needed and can only happen through innovation. In 2019, we initiated a strategy of opening dedicated debt management offices close to the municipalities we operate in to give communities access to our services and to be able to adequately resolve their billing related problems. This physical debt collection approach helps us to interact with the debtors and create personal relationships. MF: Credit control and debt management are only one aspect of municipal revenue administration. In your view, what is the unique offering/ revenue value chain that Kumyolz Investments can provide, that will bring about the required ROI for municipalities?
Kumyolz views the development of institutional capacity in revenue management as an essential mechanism that municipalities must invest in, to realize sustainable financial viability. We ensure that the tools and systems we use in debt management are accessible to municipal employees and we provide training as part of our deliverables.
MF: Municipal customer databases cannot always be relied on, and migration patterns can have a significant impact on debt collection and service delivery. Do your services help municipalities in this regard? Kindly elaborate.
The municipal consumer database has long been identified as a key factor in debt collection. As a result, in partnership with a highly experienced and licenced South African data tracing company, we offer Data Verification & Tracing services that enable us to search every record we require to reach a debtor. These records are made available to our municipal clients to clean their data and have up-to-date master files.
MF: What other services or strategies are offered by your company?
We also specialise in data cleansing and data analytics. In this regard we use all four major credit bureaus to source information while our team on the ground are able to collect data door-to-door.
MF: Your website also lists among your services Indigent Verification, Employee Benefits, Tracing, Credit Control Systems, and Meter Readings. Could you perhaps briefly elaborate more on these?
Yes, Indigent Verification refers to a full social verification process where we look at the financial standing or reputation of the concerned entity or person to assist our clients in making informed decisions. We also provide reports linked to erf or account numbers.
In respect of Employee Benefits and Tracing, we conduct Section 37 C tracing of beneficiaries as well as drafting of resolutions. We also conduct tracing of retirement funds’ members, and we draft responses on behalf of retirement funds to the Office of the Pension Funds Adjudicator. Furthermore, we also do individual meter audits and reporting at a very high level, including provision of geographic coordinates and photos of the meter.
Apart from the Credit Control Systems for municipalities I have already spoken about, we also provide such solutions for our clients that are trying to secure payment from delinquent and seriously delinquent customers.
MF: Your company would like to be seen as a trusted revenue collection company in South Africa beyond the near future. How are you planning to achieve that?
Our revitalised Research & Development Unit will develop new analytical initiatives and innovative debt collection strategies. This will position the organization to take advantage of new generation technologies (4th industrial revolution) and improve revenue collection for our clients. We believe this strategic direction will enable us to expand our footprint across South Africa and beyond, while building internal technical capacity.
CONTACT INFORMATION
International Business Gateway, New Road, Midridge Park, 12 Challenger Avenue, TFT House, Midrand, South Africa
Call: 010 448 0502
