City engages debt collectors

Mr Gwindi
Mr Gwindi

Innocent Ruwende Municipal Reporter—
Harare City Council has engaged private debt collectors to recover more than $250 million owed by residents, businesses and Government departments. Some residents in Tynwald and other suburbs — who have gone for more than three months without paying their bills — are reported to have been issued with summons. As of May this year, the city was owed a combined $253 892 806 by ratepayers, a situation that the city says has affected service delivery.
Industry and commerce were the biggest culprits owing $130 million, residents $105 million and Government $16 million.

Satellite towns including Chitungwiza, Norton, Ruwa and Epworth owe the city a combined $3.4 million.
Of the total debt, $92 million is owed for water.
Harare Mayor Councillor Bernard Manyenyeni on Tuesday said the city desperately needed money and would use any legal tool to recover outstanding debts.

“Any legal tool to bring the money into our coffers is welcome. We desperately need the money. Residents should not forget to do their duty to the municipality,” he said.
According to minutes of the Finance and Development Committee of September 26 this year, councillors approved the engagement of private debt collectors.
“The committee noted with concern the amounts owed by the various stakeholders and felt there was need to engage private debt collectors to collect such outstanding debts.

“The committee felt that immediate action had to be taken in line with the strategies recorded on revenue. The committee underscored the need for immediate and urgent action on the matter,” reads part of the minutes. Harare Residents Trust director Mr Precious Shumba, however, said the city was being unnecessarily aggressive.

“If this happened, the City of Harare is unnecessarily aggressive and insensitive to the residents and without a court order, the City of Harare is violating resident’s rights to water,” he said.

In July this year, the city said it would take various measures to collect the outstanding debts, which include issuing final demands to defaulters, issuing summons and transferring debts to external lawyers. It also threatened massive water disconnections.

The city’s corporate communications manager, Mr Leslie Gwindi, said that residents should settle their outstanding bills to avoid losing property.
“If all ratepayers would honour their obligations, there would be an improvement in service delivery, in waste management, road maintenance and efficient water supply to residences. The city requires fuel on a daily basis to be able to collect garbage and to do maintenance work,” he said.

The city is on average collecting $11 million every month even though it bills around $24 million.
Mr Gwindi said many people have failed to pay their bills on time while some residents have not paid a single cent towards their bills since July 2013 when Government ordered local authorities to cancel debts owed by residents.

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