City in the red

intends to swap US$55 million of that debt for what it owes in taxes and social security payments.

Harare mayor Mr Muchadeyi Masunda said: “We have a situation where Government owes us US$70 million and we owe US$55 million. We are saying let us have set off procedures.”
Mr Masunda said Treasury could assist the city by assuming the city debts to the Zimbabwe Revenue Authority and the

National Social Security Authority in return for having its debts to council slashed by a similar sum.
Council’s cash shortage has been worsened by failure to access funds from US$42 million allocated local authorities by Finance Minister Tendai Biti in last year’s National Budget.

Mr Masunda said the city had many creditors who needed to be paid urgently.
“What we are asking Treasury is to assist us with regards to the statutory debts that we owe as a city.”
Among other creditors, City of Harare owes Zimra, NSSA, the Local Authority Pension Fund and Harare Medical Cover almost US$55 million.

But council is owed far more, about US$200 million – industry owes US$80 million, Government and its departments US$70 million and individual ratepayers US$40 million.

Last month, the city embarked on a blitz on defaulters with Mr Masunda personally engaging some firms that were reluctant to settle their outstanding bills.

“Discussions are ongoing with Treasury, but generally finance ministers the world over are reluctant to enter into such arrangements like setting off debts,” he said.

“We hope to succeed. I am a committed citizen and I want to make the city and my country better.”
Mr Masunda confirmed that the city did not get funds from last year’s budgetary vote.

“We never got a penny from the US$42 million budgetary allocation for all local authorities in the country last year,” he said.
The mayor has been criticised by Local Government, Rural and Urban Development Minister Ignatius Chombo and the

Harare Residents Trust who are accusing him of underperforming.
Last year, Minister Chombo wrote to Mr Masunda registering his displeasure over what he termed the mayor’s “lacklustre

approach on matters to do with public welfare” and urged him to pull up his socks.

The Harare Residents Trust said residents were not satisfied with Mr Masunda’s performance citing alleged failure to address perennial water shortages and other problems.

The Trust is compiling a comprehensive report evaluating the performance of Mr Masunda since he assumed office in 2008.