Online Reporter
Thupeyo Muleya
Beitbridge Bureau
BEITBRIDGE Municipality is engaging Government departments to recover over US$14,1 million in unpaid bills, a debt that has severely constrained the local authority’s ability to implement key capital projects, including the consistent supply of water to its nearly 100 000 residents.
Speaking during a full council meeting on Monday, Town Clerk Mr Loud Ramakgapola said several Government departments based in Beitbridge were among those owing unpaid rates, water bills and service charges.
“We worried about the level at which people are defaulting payments and hence our debtors have been increasing with each passing year,” he said.
“It is sad to note that we are owed a total of US$14 158 200,01 by Government departments operating within our town. We need to work together as the local authority and ratepayers in resolving this issue. We cannot run a viable council when people are not paying for services.
“So, we have sent a team to meet the heads of Government departments at provincial and national level so that they may service their debts.”
Mr Ramakgapola said council was now collecting far less than its revenue target, which has compromised its ability to meet obligations and fund development.
At the end of the first quarter of this year, the municipality’s revenue collection breakdown was 64 percent in ZiG, 19 percent in South African rand and 17 percent in US dollars.
Mr Ramakgapola noted a slight increase in ZiG collections, though US dollar inflows had declined, raising concern over the council’s ability to meet US dollar-denominated costs, including those for some critical services and supplies.
“We have had positive responses from our debtors but in some instances we have to enlist the services of our council lawyer and a debt collector to make people pay up,” he added.
Mr Ramakgapola said one of the municipality’s major financial pressure points is the US$1,47 million owed to the Zimbabwe National Water Authority (Zinwa).
Due to non-payment, Zinwa had installed a prepaid bulk water meter, forcing the municipality to pay upfront for water required for treatment and supply.
Although the municipality had disconnected water supplies to its largest defaulters, it is still struggling to raise the $200 000 needed weekly to meet the town’s water demand of 18 megalitres a day.
“Our revenue collection rate in the first quarter was 62 percent of the billed amount which is lower than the acceptable 65 percent,” Mr Ramakgapola said.
The financial strain worsened after the Zimbabwe Revenue Authority garnished the municipality’s bank accounts over unpaid taxes. To address the tax arrears, the local authority entered into a year-long payment plan with Zimra to settle a total debt of ZiG7 975 016 and US$252 090,14.
This agreement led to the lifting of the garnishee order on June 3 this year, with normal banking operations resuming the following day.
dyton mupawaenda