Chronicle Editor
Midlands Bureau
GWERU City Council has announced that it will be introducing a new United States dollar-based billing system starting next month with ratepayers having an option to settle their bills at the prevailing inter-bank.
In a statement, the acting town clerk Mr Livingstone Churu said the outstanding bills will be converted to US dollar at the prevailing interbank rate.
“The City of Gweru bills shall be issued in USD starting from the 1st of April 2024. Kindly note that outstanding bills will be converted to USD at the prevailing interbank rate,” he said.
“Please be advised that the bills are payable in either USD or ZWL at the prevailing interbank rate of the day of payment.”
The move towards billing and debt collection in US dollars has been met with resistance from residents.
The chairman of Gweru Residents Trust (GRT), Mr Antony Madzivanyika described the move by the local authority as unjustifiable.
“The shift to a stronger foreign currency like the US dollar directly affects residents, who may struggle to pay their dues due to the higher value of the US dollar compared to the local; currency. This conversion could lead to a sudden increase in residents’ debts, posing a significant challenge for many in clearing their balances,” he said.
Mr Madzivanyika urged the council to explore alternative ways of revenue generation instead of converting existing debts to bolster its financial position.
“This development underscores the need for a balanced approach to financial management and public welfare, sparking discussions on sustainable and fair financial strategies for local governance in turbulent economic times,” he said.
Gweru Residents and Ratepayers Association (GRRA) director Mr Cornelius Selipiwe urged the council to first address its billing system which is largely relying on estimates.
“Council needs the US dollars for chemicals, fuel and other things, but they are using estimates and that matter should be dealt with so that residents are not short-changed. There are also questions about the fairness and legality of this decision, given the economic hardships faced by the residents,” he said.
Gweru City Council has since resolved to engage a debt collector in a bid to force residents and ratepayers to settle their monthly bills and help recover the nearly $71 billion owed by its clients.
The council has expressed concern over payment defaults amid reports that some residents last paid their rates 10 years ago, a development blamed for poor service delivery due to inadequate funding.
Online Reporter