Former clients receive credits from the municipality

Due to a shortcoming by the municipality, money remained on municipal accounts for about 10 years that should have been paid out to people who used financial services provided by the municipality. This was discovered during a reorganization. The municipality will now pay this money to the former clients.   

The municipality will deposit approximately €350,000 in total into the accounts of 1,130 residents. The money has been on the municipalitys accounts all this time. Sometimes it concerns a few tens of euros, but most people receive an amount up to €250. They also receive 4% interest on the amount. 

The initially small problem grew over 10 years to its current size.  

The municipality manages money for people with serious financial problems. The municipality ensures that fixed costs (such as rent, gas, water, electricity, insurance) are paid on time and debts do not increase. This is done via an account in the name of the municipality. Once a client has their finances in order, the municipality transfers the money it manages for the client back to the client.  

Sometimes money was received afterwards to which the client was entitled. For example, refunds from utility companies. These amounts were sometimes not automatically transferred to the clients accounts.  

Alderman Rob de Geest (Work and Income): “We deeply regret that this has happened. After a reorganization, this came to light. New managers have taken measures, after which a plan was quickly made for the payments of the credits. I can well understand that people affected are angry. If there are people who have been put in difficulty because of this, we will do everything possible to help them in an appropriate way.” 

The municipality will also pay out received VAT refunds to former clients. The municipality had to charge VAT for the execution of protective administration according to the Tax Authorities. The municipality disagreed and was right according to the Tax Authorities. The municipality received €303,868 back from the Tax Authorities. The municipality pays the money back to approximately 500 residents for whom it was intended. The amounts per person can be up to €1,000.

The municipality has informed all former clients or their next of kin in writing.