Chronicle Editor
Nqobile Tshili, [email protected]
THE Zimbabwe National Water Authority (Zinwa) has revealed that it is owed ZiG380 million by its clients, a situation that is severely impacting its operations.
Due to this substantial debt, the authority is struggling to procure bulk water treatment chemicals and maintain other essential services.
In response, Zinwa has begun disconnecting water supplies to defaulters as a measure to recover the owed funds.
Additionally, the authority is considering taking legal action against those who have failed to settle their debts.
Zinwa plays a crucial role in delivering bulk water to numerous institutions across the country. The financial strain caused by unpaid bills is jeopardising the water utility’s ability to fulfil this mandate, posing a significant risk to water supply services.
In a statement, Zinwa’s head of corporate communications and marketing, Mrs Marjorie Munyonga said the financial strain caused by unpaid bills is jeopardising their ability to fulfil their mandate, posing a significant risk to water supply services.
“As Zinwa, we are owed over ZiG 380 million in unpaid water bills by various consumers; and this poses a serious threat to the authority’s ability to sustainably and effectively render services per our mandate,” he said.
In recent weeks, Zinwa has had challenges in servicing its own bills, and procuring critical inputs such as electricity, fuel, water treatment chemicals, and spares due to depressed revenue inflows.
Mrs Munyonga said due to non-payment of bills by water consumers, Zinwa is facing difficulties in paying its suppliers and meeting statutory obligations such as taxes, levies and related remittances.
She said by the end of June Zinwa was owed a total of ZiG382 571 195 in unpaid bills, some of which have been outstanding for over four months.
Mrs Munyonga said Government departments constitute the bulk of its debtors.
“Domestic clients owe a total of ZiG54 669 123 while Government ministries and departments account for the biggest chunk of the debtors’ book at ZiG189 461 672,25.
“Irrigating farmers are the authority’s second largest debtor, owing ZiG74 962 888, 66 while local authorities owe us ZiG20 048 759, 79,” she said.
“Mines also owe Zinwa ZiG10 247 236,99 while other parastatals owe the authority ZiG8 387 055. Schools and churches owe ZiG5 108 593,10 and ZiG 5 260 994,71 respectively with business entities owing ZiG12 098 171,29.”
Mrs Munyonga said Zinwa has implemented several debt recovery strategies including water disconnections while taking legal action against some of the clients.
“To curb the further growth of the debtors’ book and to ensure continued service, Zinwa has instituted a range of measures to recover the outstanding amounts through engaging defaulting clients, rolling out a massive disconnection exercise, implementing a door-to-door revenue collection blitz at selected stations, widening our payments platforms and taking legal action against some clients,” she said.
Mrs Munyonga said farmers who are involved in winter wheat are encouraged to adopt stop-order arrangements with their financiers or off-takers of their produce so that they can benefit from seasonal billing, which allows them to settle their bills only after receiving payments for their crop.
Mrs Munyonga said farmers on these stop-order arrangements are exempt from any interest charges until after they receive payments for their crop.
“Zinwa reiterates that there is a correlation between paying for water and service delivery. When users and recipients of services do not pay, it becomes extremely difficult for utilities to provide reliable and sustainable services,” said Mrs Munyonga. — @nqotshili
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