Chronicle Editor
Robin Muchetu, Senior Reporter
THE Bulawayo City Council (BCC) has engaged debt collectors to recover US$50 million which it is owed by ratepayers, revealing that the debt was resulting in them failing to attend to sewer, water, road maintenance and other key services in the city.
The local authority said of the total money owed, residents owe the biggest chunk, with the city’s corporate communications manager, Mrs Nesisa Mpofu calling on the ratepayers to clear their bills as a matter of urgency.
“The City of Bulawayo is owed $330,4 billion as of the end of November 2023 with Government departments owing seven percent of the debt, industry and commerce; 31 percent, and residents (domestic) 62 percent of the total debt. The debt is equivalent to US$50,6 million,” said Mrs Mpofu.
“The impact of the debt on service delivery is apparent throughout the City and it includes delays in attending to water and sewerage bursts, delays in attending to potholed roads, delays in collecting garbage and suppliers threatening to deny council services and essential parts.”
To recover what is owed by debtors, the city has resorted to several strategies to ensure they collect their dues and provide better service delivery.
“The City of Bulawayo is using a multi-pronged approach to collect the above debt. The following are the strategies that the city is using to collect the debt, monthly bills to customers, engagement with debtors, final demands, 24-hour notices to restrict services, service restriction, hand over to the legal section and lawyers, and summons and attachment of property,” said Mrs Mpofu.
She added that those customers who owe the local authority must make payment plans to clear their debts.
“Customers are free to approach Council Revenue Offices for payment plans. An acceptable payment plan must be accompanied by the requisite down payment that significantly reduces the debt,” said Mrs Mpofu.
According to the latest council report debtors in the city increased by 14 percent and creditors increased by 19 percent.
“It is imperative that council unitedly enforce debt recovery otherwise it runs the risk of debt prescribing due to failure to timeously collect amounts owed. For the month of October 2023, $17,1 billion (54 percent) of the total receipts from billed accounts) was received from domestic ratepayers whilst $14,8 billion (46 percent) of the total receipts from billed accounts) was from non-domestic ratepayers.
“The creditors balance as at 31 October 2023 increased from $49 billion to $58 billion. In terms of percentage increase, the major increase was on Zesa (28 percent) followed by Local Authority Pension Fund (19 percent), Taxes (11 percent), salaries (seven percent),” reads the report.
Zesa is the largest creditor as the city owes for electricity utilised at the water pump stations in Ncema and Fernhill.
Bongani Ndlovu