adminRichard Muponde Sunday News Correspondent
BULAWAYO City Council has issued summons worth over $130 000 to defaulting businesses, some of which have not paid a single cent to the local authority since dollarisation, amid revelations that more companies will be taken to court. BCC is owed over $90 million by defaulters, with the major culprits being Government and industry, leaving city fathers with no option but to resort to legal action.
According to summons before the court filed by BCC lawyers, Majoko and Majoko Legal Practitioners, Deloitte and Touché has the highest amount as the accountants owe the local authority $58 764.
“Payment in the sum of $58 764 arising from being arrears rates charged on account number 62500906 held by the Defendant (Deloitte and Touché) in respect of its immovable property known as Town House Flats, corner Josiah Tongongara and 9th Avenue which arrears accumulated from January 2015 to June 2015 which defendant has failed to pay despite lawful demand to do so by the Plaintiff (BCC),” read part of the summons filed at the Bulawayo High Court.
However, on Thursday the local authority withdrew its action against Deloitte and Touché after the two parties reportedly engaged each other.
The other companies are Bitumen Construction which is owing $33 884,78 for Stand number 12256A, corner Magazine and Welland roads in Steeldale which has not paid rates between November 2010 to June this year.
Samaritan Marketing Pvt Ltd is being sued for $11 308,40 which it did not pay the city fathers from May 2010 to July this year.
Businessman, Foreman Dube is owing council $12 663-54 for his premises number 18261 Kelvin North since dollarisation in January 2009 to July this year
Another company, Van Jaarsveldt Properties (Pvt) Ltd has a debt of $16 697,15 which accumulated between March 2009 and June this year for its premises number located at 6 Waltham, Thorngrove, while Teel investments (Pvt) Ltd has failed to pay $16 589,15 from March 2009 to February this year for its premises at number 55 Queens Road Nothernd.
The companies have been given 10 days to file their notices to defend the lawsuits failure of which the matters would be heard without them being notified.
Bulawayo City Council has resorted to taking defaulters to court as the cash strapped local authority seeks to recover money owed as rates.
Recently household goods belonging to defaulters were auctioned to settle debts owed to the local authority.
In June, Bulawayo property magnate Mr Ernest Marima’s property was set for auctioning by Bulawayo Real Estates to offset debts owed to BCC and some banks after they won a High Court order to auction the properties to recover their money.
Among the properties was Mr Marima’s four-storey Derby House building which comprises apartments, shops and offices which had been attached. The local authority is the applicant in Mr Marima’s case. However, the auction was withdrawn at the last minute.
In June last year, an auction conducted by the Mutare-based Hollands Estate Agents in Bulawayo flopped as it was characterised by a low turnout following verbal threats by the Affirmative Action Group (AAG) to disrupt it and effect a citizens’ arrest on the auctioneers.
The estate agent was supposed to sell 20 residential houses and 23 residential stands belonging to companies and individuals.
AAG said the sale was unfair to the business community in Bulawayo considering the harsh economic conditions that have seen most companies closing down.
The AAG Bulawayo branch has been calling for a moratorium on litigation against businesspeople battling to pay rentals and other utilities. It has argued that litigations had become big business and were negatively impacting on the city’s economy.
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