Residents owe local councils $1 billion

cash3

Innocent Ruwende, Harare Bureau
Zimbabwe’s major local authorities are owed more than $1 billion in unpaid bills by residents, Government, industry and commerce, a situation partly to blame for poor service delivery by most councils.

Some of the local authorities are reportedly failing to collect refuse and provide other basic services as well as pay salaries.

Residents, commerce and industry are said to be the biggest culprits.

Harare finance director, Mr Tendai Kwenda said Harare was owed more than $658 million and the city was using various strategies including evictions of those leasing council properties as well as issuing summons against defaulters in an attempt to recover its dues.

The city, armed with court orders, is in the process of evicting defaulting tenants over debts amounting to more than $10 million in Highfield and Glen Norah.

“We have employed various strategies to recover the money we are owed. We have availed easier bill payments with various banks including Ecocash, One Wallet and Telecash. We are entering into debt set off arrangements with larger organisations like Government debts with Zimra indebtedness, NetOne with council bills, Zimphos rates for water chemicals, Local Authorities Pension Fund set off with retired personnel pension,” he said.

The city says it hired private debt collectors — Wellcash debt collectors —who were efficient but their operations were frustrated by pressure groups.

Bulawayo Mayor Martin Moyo said council was owed more than $150 million by residents, Government and business.

“We are engaging our residents because the revenue we are getting is declining. We are encouraging our residents to enter into payment plans but sometimes we are forced to disconnect water supplies,” he said.

Mutare Mayor Mr Tatenda Nhamarare said council was now resorting to debt collectors as it was owed more than $41 million.

Chitungwiza ratepayers owe the local authority close to $60 million in unpaid rates and bills as of June 21, 2017.

Masvingo Mayor Hubert Fidze said ratepayers and Government owed the city more than $42 million.

“We are encouraging ratepayers to enter into payment plans. We are getting 60 to 70 percent of what we bill. We are using debt collectors in some instances for the business community,” he said.

The Kwekwe Mayor Tatenda Madzoke said council was owed over $30 million by Government, residents and business.

“We are now requesting our senior employees, including directors, to chase up debts. We are collecting less than 50 percent of what we bill, a situation which is affecting service delivery,” he said.

Clr Madzoke said under normal circumstances, council collected more than $2 million but it was now getting between $700 000 and $1 million on a good month.

Gweru City Council was owed more than $52 million by ratepayers as at May this year.

You Might Also Like

Comments