$1.6M BCC debt cleared

Nduduzo Tshuma Senior Political Reporter
THE government has offset a $1.6 million debt to the Bulawayo City Council against tax owed to the Zimbabwe Revenue Authority (Zimra) by the municipality.
Speaking during question time in the National Assembly on Wednesday, the deputy minister of Local Government, Public Works and National Housing, Cde Biggie Matiza, said the government paid the amount to settle its own debt to BCC.

Cde Matiza was responding to MDC-T Emganwini legislator Phelela Masuku who had asked whether the government had paid BCC for rates.

“Mr Speaker Sir, the Ministry is aware that government ministries and departments owe all local authorities, including Bulawayo City Council, huge sums of money. That level of indebtedness is a result of a mismatch between line ministries’ demand for municipal services and their ability to pay,” he said.

“In the case of Bulawayo City Council, government also realised that they had some arrears in terms of their accumulated tax obligations to Zimra to the tune of $1,951,384 as at June 30, 2014, which needed to be paid urgently.”

Cde Matiza said during the same period the government owed BCC $1,638,277 which was also long overdue.

“Instead of paying the money owed to the Bulawayo City Council, government, through the Ministry of Finance, facilitated a payment of $1,638,427 towards reducing the statutory obligations of councils to Zimra on July 16, 2014,” he said.

“I’m pleased, Mr Speaker Sir, to inform this august House that Bulawayo City Council now owes Zimra $312, 857.”