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Midlands Bureau Chief

CITY of Gweru (COG) has, through the Messenger of Court (MOC), served 421 defaulting residents with final letters of demand as council takes the litigation route in a bid to recover $2,6 billion it is owed for rates and other services.

Early this year, a number of homeowners from Senga area had their properties attached by the MOC at the instigation of the local authority in a bid to force ratepayers to settle outstanding bills.

As of December 31, 2021, the council debt was at $1,1 billion which rose to $1,7 billion in May and now it’s at $2,6 billion and rising.

The big surge in ratepayer’s debts is coming at a time when COG has rebased the 2022 budget in United States Dollars using the interbank rate, a development that has resulted in a sharp surge in bills.

According to one statement for the month of June-July sent to one of the residents, the bill has increased from about $3 500 to $13 600 while another statement has a bill rising from about $2 491 to $25 404 in the same month.

In July, the local authority resolved to index bills in foreign currency with ratepayers being able to settle their bills and services using the prevailing auction rate.

The local authority’s 2022 budget of $4,9 billion, which was approved by the Government, has depreciated by over 72 percent.

Council buys goods and services for its service delivery value chain at the interbank rate plus 10 percent and it becomes apparent that it has to recover its costs at the interbank rate plus 10 percent.

So, the council seeks to use the interbank rate in the payment of bills as a result of the local currency’s volatility.

In an interview, COG public relations officer Ms Vimbai Chingwaramusee confirmed the development and said the council was taking the litigation route to force debtors to settle their bills.

She said ratepayers had lost an appetite to settle their bills.

“The City of Gweru has through the Messenger of Court (MOC) served 421 defaulting residents with final letters of demand as council takes the litigation route in a bid to recover $2,6 billion it is owed for rates and other services. Of the 421 final letters of demand 159 have been executed meaning if they don’t pay, they will end up losing their valuables,” said Ms Chingwaramusee.

She said residents owe council over $1,6 billion followed by industry which owes over $ 400 000 and the Government departments which are over $207 000.

COG finance committee chairperson Councillor Martin Chivhoko recently said the rebasing exercise was justified bearing in mind that the council was also operating in a hyper-inflationary environment.

Councillor Martin Chivhoko

“We thought by rebasing things will improve. We will be able to buy fuel and buy vehicle spare parts and water chemicals which are charged in United States dollars. We expect our residents to understand that the economic situation is just not favourable. People can afford to pay for DStv at US$40 per month but want to pay US$2 to council,” he said.