happiness Chikwanha
Michael Chideme in Chivhu
Zimbabwe Local Government Association leader Mr Nimrod Chiminya has hailed Government’s directive for local authorities to cancel debts that accumulated from February 2009 to June 30 this year. He said the local authorities would lose nothing as most of the debts were
uncollectable. “Keeping such debts on the books had become an accounting mirage giving an erroneous and distorted picture of financial positions of councils,” he said.
The country’s 92 local authorities are owed over US$2 billion in unpaid rates and bills. The cancellation is a direct response to complaints by residents associations and residents themselves to Local Government, rural and Urban development Minister Ignatius Chombo.
Said Mr Chiminya: “The bulk of these rates were not collectable due to economic hardships. Ratepayers should be able to afford the current bills as way forward.”
Mr Chiminya said reduced pressure on residents would stimulate economic activity. He said should other utilities like Zesa Holdings and Zinwa do the same — the relief on residents would be commendable.
Minister Chombo confirmed the debt forgiveness was worth US$2b an amount he said was four times bigger than what the IMF gave to the national economy under the special drawing rights in 2009.
“The debt forgiveness is based on sound financial management,” he said.
Minister Chombo said the debt forgiveness was expected to create demand for goods and services and ultimately create employment downstream. “The amount saved would be used in the economy and to safeguard family food security,” he said.
He said the directive should also be read together with his order that stops the repossessions of residential stands and houses. He said local authorities should be more people oriented as opposed to employing Shylock tactics of debt recovery.
Bongani Ndlovu
Online Reporter