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Patrick Chitumba, Midlands Reporter

CASH strapped Gweru City council has sad it is technically insolvent as it is running on empty coffers.

If a company is technically insolvent it is incapacitated to sustain its operations and requires the services of a judicial manager.

Acting director of Finance Mr Masimba Masimba said the MDC Alliance-run local authority was technically insolvent.

Mr Masimba revealed this while making a presentation on the state of affairs of the council to the Zimbabwe National Defence University (ZNDU) students visiting the local authority last Thursday. “Our budget (2019) was $46 million and as we speak we have got debtors to the tune of $75 million. We have got creditors to the tune of $74 million. Those who know a bit about financial management- the moment you say you have debtors of $75 million and creditors of $74 million, it means you are technically insolvent,” said Mr Masimba. He said a huge chunk of the $74 million is owed to ZETDC  and the council’s pension fund. 

“These are not day to day working capital creditors for example out of the $74 million, $30 million is owed to ZETDC which is for the electricity we use to pump water from Gwenhoro Dam and $13 million is owed to the pension fund. We also owe Zimra $5 million,” said Mr Masimba.

He said on a monthly basis council’s average collection is $2,4million out of the average billing of $3, 8 million. Mr Masimba said council now requires about $6 million a month to meet its financial obligations. 

“We did a supplementary budget which hasn’t been approved by the parent ministry which means the technical imbalance continues to manifest and we fail to deliver meaningful service to residents,” he said. ZNDU Vice Chancellor, Air Vice Marshal Michael Moyo said he was disappointed by poor service being experienced by Gweru residents.

He said while Government is making frantic efforts to improve key sectors of the economy, it is disappointing to note the City of Gweru has taken a lazy approach towards service delivery as evidenced by unavailability of clean water, poor health services and poor road network. 

“We are here on a study tour to learn about local governance systems and while doing so we must add value to the operations of your city. I am disappointed with the state of service delivery. There is need for you as a local authority to shift from the blame game and focus on for example provision of safe water for the residents.

“The city should come up with sustainable ways of ensuring water supply is consistent because water is life. You must also improve on roads, we have seen many potholes around town, that gives a bad image of your progressive town,” he said.

In his remarks, Gweru deputy mayor, Councillor Cleopas Shiri said the city is facing a myriad of challenges but has however opened investment opportunities in the areas of waste management, water reticulation and pre-paid water metering. 

“We have investment opportunities for those who are willing to take up rehabilitation of our water reticulation system and installing prepaid water meters.  We are also calling for investors who are willing to rehabilitate our sewer treatment plants. 

“We are also looking for partners to assist us on solar street lighting,” he said.