Chitown debt still high despite 50pc discount

Yeukai Karengezeka Herald Correspondent
The 50-percent discount promotion offered to Chitungwiza residents between February and March this year has slashed ratepayers’ debt by $1,2 million. Chitungwiza Municipality introduced a discount promotion to persuade residents to honour their ballooning bills.

Recent finance committee minutes show that the local authority enjoyed a decrease in the ratepayers’ debt by $1,2 million while the promotion was in full swing.

“The debtors’ figure as at March 31 2019 stood at $74 222 110 as compared to $75 454 209 and this consists of commercial and industrial debtors worth $29 286 099 and residential debtors worth $44 935 992.

“The debtor’s figure decreased by $1 232 099 that is 1,63 percent as compared to the previous period mainly because of the 50 percent promotion on residential debtors,” read the minutes.

The local authority also raked in $2 million against the previous amount of about $1,2 million the previous month.
“Revenue collected for the period has increased to $2 196 552 from $1 292 624 collected the previous period. The increase of revenue during the month of March 2019 as compared to February 2019 is due to the 50 percent promotion that was targeted at residential property owners which ran from 15 February to 31 March.”

Finance director Mrs Evangelista Machona reported that salary-related expenditure constituted 50,7 percent of the municipality’s budget.

She also reported that credit control started issuing summons in February to defaulting ratepayers.
“Credit control started issuing summons in February 2019 to defaulting customers in batches of 100 and so far 200 summons with a total value of $604 916 have been submitted to the Messenger of Court.

“The Messenger of Court has managed to deliver 135 summons and failed to locate 18 properties whilst 47 are pending delivery, “she said in the report.

She added that thanks to the summons, council managed to recover $19 777.
The municipality would seek default judgment from the courts and apply for attachment of property to recover the outstanding debts from all those who failed to res- pond.