adminWalter Mswazie Masvingo Correspondent
THE Zimbabwe National Army (ZNA) 4 Infantry Brigade has settled its more than $550,000 debt to Masvingo City Council through a debt swap deal.
The debt which had accumulated to $556,000 was settled through swapping the debt owed by council to the Zimbabwe Revenue Authority (Zimra).
Masvingo Mayor Councillor Hubert Fidze confirmed that the uniformed forces had their debt paid by treasury and urged other government departments who constitute more than 50 percent of council’s debtors, to also pay up.
Clr Fidze said council had approved a standstill budget of $19 million and rates have remained reasonably affordable.
“We’re happy to see our clients especially government departments who constitute a big share of our debtors, paying their debts.
“ZNA has since paid its debt of $556,000 for the services rendered and that includes water bills and other rates,” said Clr Fidze.
“Failure to collect debts has resulted in council also failing to timeously pay its obligations to its creditors including the Zimbabwe Electricity Transmission and Distribution Company, Local Authorities Pension Fund, Ministry of Industry and Commerce, Masvingo Municipal Medical Aid society and council employees. Service delivery is also compromised.”
He said council managed to collect revenue amounting to $16, 8 million for both cash services and billing as compared to the budgeted figure of $15, 9 million. The mayor said they had an expenditure of $11, 2 million compared to the budgeted figure of $15 million.
He said expenditure was limited to the actual cash collections.
Clr Fidze said overall performance of the 2015 budget stands at 70 percent but staff costs rose to 38 percent against 32 percent that was budgeted for the financial year.
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