adminMarvelous Moyo Gwanda Correspondent
CASH-strapped Gwanda Municipality has engaged private debt collectors in an effort to boost revenue and recover about $4 million the local authority is owed by ratepayers.
The debt collectors have since served some residents and the businesses community with letters advising them to settle the bills owed to the municipality within three days.
They are targeting mostly individuals and companies that owe the local authority $300 or more in water bills and rates.
Accounts that have gone for 120 days without being serviced are also being targeted.
“We have been instructed to collect the said amount of money together with costs through our offices within three days after date of letter, failure of which appropriate action will be taken against you. Payments should be made in cash or cheque,” read a letter from Majestic Debt Collectors and Tracing Agents.
Town clerk, Priscilla Nkala, yesterday confirmed the municipality’s engagement of debt collectors. She could, however, not reveal how much the municipality was owed.
“It’s true we have debt collectors on the ground as we step up efforts to recover the money we are owed by residents and members of the business community. Most of them are not servicing their accounts. I don’t have the information as to how much they owe the local authority,” she said.
Sources within the municipality said the municipality was owed about $4 million.
The municipality has since partnered Innotec Private Limited to help enlighten residents on the importance of paying their bills.
“Municipality of Gwanda has partnered with Innotec (Pvt) Ltd in an effort to enhance revenue collection and improve the delivery of social services to all rate payers and residents of Gwanda in line with government’s aspirations as espoused in Zim-Asset,” read a letter signed by the company’s community liaison and credit control executive, Victor Ngwaladi.
However, members of the business community are not happy with the bills they received, arguing that they were exaggerated.
“I had been ordered to pay almost $3,000 within three days. This bill was exaggerated and I have since approached the municipality which admitted that it had made an error and reduced the bill to around $1,500,” said a local businessperson who preferred anonymity.
Other business persons were said to have received letters stating that they owed the municipality as much as $7,000.
The municipality has so far managed to collect only less than 20 percent of targeted revenue owing to residents’ failure to honour their bills.
On the other hand, the municipality owes its service providers $8 million and has failed to pay its workers’ salaries on time.
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