Masvingo residents owe council $1,4 billion

Sharon Chimenya, Masvingo Correspondent

MASVINGO City Council is owed over ZW$1,4 billion in unpaid rates by residents and institutions with over 1 400 subscribing to payment plans to try and clear their dues.

According to the report from the local authority, residential debtors owe over ZW$187,6 million while a huge chunk was owed by institutional debtors with ZW$200,6 million.

Speaking in the review of the 2022 half-year budget meeting, Masvingo City Finance Director Mr Danister Jori said delays in revenue collection was crippling service delivery in the city.

“Our debtors’ books as at 30 September stood at ZW$1,4 billion which is almost a $1 billion increase from the figure that we had when we started the year of ZW$422 million. Any delay in collection of revenue has a negative impact on the performance of council in terms of service delivery because during this hyperinflation period the purchasing power is lost through time” he said.

He said council had enlisted the services of two law firms to assist in the collection of delinquent debtors and screening of lists for handover to these law firms was in progress.

“We are also noticing a trend where some properties go for more than two months after disconnection of water services without paying, this scenario might imply that there is water theft at the said properties or they are living in unhygienic environments.

In both cases, we are intensifying follow ups on such properties in order to ensure adherence to the city’s by-laws. Engagement with individual debtors have also been intensified seeing the number of debtors enlisted on payment plans has risen to over 1 400 and road-shows have been conducted to conscientise residents on the need to pay up their bills,” added Mr Jori.

Mr Jori said the local authority also had payment arrangements with its creditors whom they owe around ZW$197,2 million and expressed need for enhanced collections from the various debtors to avoid default and consequent penalties.

“As at 15 August we owed our major creditors ZW$197,2 million and the major one being the ZETDC (Zimbabwe Electricity Transmission and Distribution Company) and Zimra.

While council has payment arrangements with the various creditors, we continue to urge residents to pay their bills so that we are also not in default to those payment arrangements which will have serious repercussions on our performance,” he said.