Online Reporter
Thupeyo Muleya, Beitbridge Bureau
BEITBRIDGE Municipality has begun engaging Government departments in a bid to recover a debt of $14,1 million, which has significantly hindered the local authority’s ability to implement major capital projects including the consistent supply of water to nearly 100 000 residents.
Town Clerk, Mr Loud Ramakgapola, said various Government departments based in the town were the largest debtors to council, prompting the decision to initiate discussions to encourage them to settle their arrears.
The debt comprises unpaid rates, service charges, and water bills. Speaking during a full council meeting on Monday, Mr Ramakgapola said council was collecting well below its targets, which posed serious operational challenges.
He noted that the non-payment of bills by residents, businesses, and Government departments was severely affecting service delivery in the border town.
“We are concerned about the rising levels of defaulting, which have led to a steady increase in the amount owed to us. It is disheartening to report that Government departments operating in our town owe a total of $14,1 million,” said Mr Ramakgapola.
“We need to work together as a local authority and as ratepayers to resolve this issue. It is impossible to run a viable council when services are not being paid for.
“As such, we have sent a team to engage the heads of Government departments at both provincial and national levels to urge them to settle their debts.”
Mr Ramakgapola revealed that, at the end of the first quarter of this year (March), the municipality’s revenue collection breakdown was as follows: ZiG – 64 percent, South African Rand – 19 percent, and US dollar – 17 percent.
He noted that while collections in ZiG had slightly increased, contributions in the other currencies had declined.
He expressed concern that if the situation continues, the municipality may soon struggle to meet its US dollar-denominated obligations due to limitations in foreign currency remittance.
“We have received positive responses from some of our debtors, but in certain instances, we have had to enlist the services of council lawyers and debt collectors to compel payment,” said Mr Ramakgapola.
A substantial portion of the debt relates to unpaid water bills and the municipality is struggling to clear a $1 467 029 debt owed to the Zimbabwe National Water Authority (Zinwa). In response, Zinwa has installed a prepaid bulk water metre, compelling the municipality to purchase water for treatment on a prepaid basis.
Although the local authority has disconnected water supplies to some of the largest debtors, it is still struggling to raise the $200 000 required to supply the town with water each week. The town requires at least 18 megalitres of water per day.
“Our revenue collection rate in the first quarter was 62 percent of the billed amount, which is below the acceptable 65 percent threshold. However, our budget performance remained at 25 percent, highlighting the impact of Central Government grants that have yet to be received,” he said.
Mr Ramakgapola added that the council had recently been plagued by poor service delivery challenges, following the garnishing of its bank accounts by the Zimbabwe Revenue Authority (Zimra) over outstanding arrears.
“A total of US$105 419,72 and ZWG1 375 803 was received via the Zimra Tax and Revenue Management System (TaRMS), after transaction costs,” he said.
“It should be noted that the Municipality of Beitbridge will need to reimburse estate funds amounting to ZWG960 000, beer levy funds of ZWG100 000, and Constituency Development Fund (CDF) allocations of US$72 620 as soon as funds become available.
“The Municipality then entered into a payment plan to settle the outstanding debt of ZWG7 975 016 and US$252 090,14 following the garnishing of its accounts.”
He confirmed that the council and Zimra had agreed on a one-year payment plan, which led to the lifting of the garnishee order on June 3, 2025.
“Normal banking operations resumed on 4 June,” he added.
Bongani Ndlovu