A New Chapter: Minister Simelane Signs MOU to Uphold Children’s Financial Security. Image: Henk Kruger / Independent Newspapers
(The Post News)- Minister Thembi Simelane signed a Memorandum of Understanding (MOU) with the Consumer Profile Bureau and the Social Justice Foundation to change South Africa’s child maintenance enforcement system on November 1st. The MOU has been hailed as a significant step toward securing the financial stability and welfare of children across the country and allows for the blacklisting of those who fail to meet their child support commitments.
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The MOU, which is part of the Maintenance Online Listing of Defaulters Project (MOLD), is designed to share defaulting parents’ information with credit bureaus, thereby restricting their ability to obtain loans or credit until they fulfill their maintenance obligations as reported by the South African government. The eNCA reports that this new system is expected to significantly improve the enforcement of child maintenance orders. It will enable credit bureaus to access maintenance order data, thereby affecting the creditworthiness of defaulters and limiting their ability to obtain new loans or credit.
Up to 70% of people with maintenance responsibilities fail to make these payments within the first two years after the court has issued the order, according to Anneke Greyvenstein, Executive Director of the Social Justice Foundation, who spoke to Sowetan Live. By limiting credit access for defaulters and establishing a strong system to execute maintenance judgments as court orders with real repercussions for non-compliance, the government is prioritizing children’s financial needs first.
Legal Analyst Mpumelelo Zikalala, in a discussion with SABC, highlighted the necessity for struggling parents to prioritize their maintenance orders before seeking new loans or credit. This prioritization is crucial for the courts to enforce debts effectively and serves as a reminder of the paramount responsibility parents have in providing for their children. The Maintenance Act of 1998 (Act No. 99 of 1998) underpins this initiative. In a recent interview with eNCA, Minister Simelane assured that while the system undergoes updates, it will soon empower credit bureaus to access maintenance default data.
Justice Minister Simelane’s decision to sign the MOU on Maintenance Online Listing of Defaulters (MOLD) in order to address child maintenance defaulters is a clear indication of the government’s resolve to address the issue of child maintenance defaulters head-on. The system’s national goal is to protect children’s economic security and rights. During implementation, it will be essential to keep an eye on the system’s efficacy and make sure it operates fairly. The number of defaulters who are prosecuted and the enhanced standard of living for the kids this program is meant to safeguard will be used to gauge its effectiveness.
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