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Patrick Chitumba, Midlands Bureau Chief
GWERU City Council (GCC) has resolved to effect a 19 percent interest per annum on defaulting residents to force them to settle their debts which now stands at more than $277 million.

GCC has also resolved to award a 20 percent discount on residents who settle their monthly bills.

Residents owed council about $277,7 million by end of last November in unpaid rates, water and other charges.

According to a 2020 financial statement, mayor Councillor Josiah Makombe said it was unfortunate that the list of defaulters is increasing.

“Our residents seem to have shunned the goodwill shown by council as they are not honouring their bills resulting in debtors as at 30th November 2020 accumulating to $277,7 million,” said clr Makombe.

He said council has resolved to levy interest of 19 percent per annum on defaulters and reward the loyal payers by a 20 percent discount.

Clr Makombe said the council’s information technology section is working on the modalities adding that very soon residents will be receiving statements reflecting the interest element.

He said it is therefore in the best interest of residents to bring their accounts up to date before they get caught in this dragnet.

“ It’s saddening to note that those who cry a lot over service delivery issues are the same people who do not want to pay thereby compromising service delivery,” said Clr Makombe.

He said council is working on effective ways of debt recovery to enable it to continue serving residents.

Clr Makombe said the emergence of the Covid-19 pandemic negatively affected council revenue streams as it lost some sources of revenue.

“On our operational side we also lost valuable time during the lockdown period and this hampered the preparation of our financial statements and resultantly we have missed our target of bringing them up to date as previously envisaged,” he said.

Clr Makombe said the department of finances has also been affected by shortage of critical staff.

“The post of Director of Finance has been vacant since April 2019. All necessary steps have been taken to fill the position but the only snag is that there is no appointing authority at the Ministry. As a stop-gap measure we intend to recruit graduate trainees to assist in clearing the backlogs,” he said.

In terms of water delivery, Clr Makombe said council managed to pay off the three high lift pumps procured from South Africa.

“The process of cleaning the pumps is now in progress so we hope to get delivery of the same this month.The commissioning of these pumps coupled with the rise in our dam levels should see a great improvement in water supply,” he said.

Clr Makombe said council is concerned by the increase in sewer blockages, a development he said is affecting residents.

“This is also costing council in terms of penalties from EMA. We have recently been fined more than $1 million for pollution,” he said.

Clr Makombe said the dual pricing system saw suppliers quoting prices in US$ yet council is paid in local currency for rates and service charges.

“Most fuel service stations are selling their products in foreign currency and as such we are finding it difficult to buy the fuel. It is my plea therefore that all suppliers who transact in US$ should also pay council bills in the same currency to enable us procure those items being charged in hard currency,” he said.