adminInnocent Ruwende Municipal Reporter
Harare City Council has accumulated a $68 million statutory obligations debt, while residents and the commercial sector owe the municipality more than US$250 million.
The city accrued debts with the Zimbabwe Revenue Authority, National Social Security Authority, ZimDef (training levies), the Local Authorities Pension Fund, Zesa and the Harare Municipal Medical Aid Society amounting to $65,8 million.
The city’s corporate communications manager Mr Leslie Gwindi said Harare has made payment plans with the respective institutions.
“The city bills on average $22 million per month and collects on average $11 million of which at least $5,2 million goes towards employment costs excluding statutory obligations.
“The city retains 55 percent of the collections with the remainder going to Harare Water. Water funds are ring-fenced to allow for continuous investment in the water sector,” he said.
Mr Gwindi said in order to provide basic services the city requires $15 million per month.
The other major costs include $5 million for accrued payroll creditors and $1,5 million for other creditors, as well as $3 million for monthly consumables.
“These amounts exclude Harare Water. Harare Water gets 45 percent of the revenue collections. Challenges in service provision are as a result of failure by residents, business and Government to pay their bills.
“From the time Government cancelled debts in July 2013 the current debt figure as of March 10 this year is $253 888 745,10. If all that amount was to be paid council would without fail provide required services,” Mr Gwindi said.
He said business and residents in low density suburbs owed council $208 127 857,57.
Residents in high density suburbs also have a high default rate and owe the city $45 760 887,53.
Online Reporter