Chronicle Editor
Patrick Chitumba, Midlands Bureau Chief
GWERU City Council (GCC) is failing to fulfill its service delivery obligations because its coffers are running dry as debtors, who include residents and businesses collectively owe it $1,4 billion.
As of December 31, 2021, the debt stood at $1,1billion.
From January to date, the debt has skyrocketed by $300 million as some residents and businesses are not paying their service charges such as rates, rentals and water services.
In an interview, GCC director of finance Mr Owen Masimba said service delivery was being hampered by the non-availability of funds since some residents had lost an appetite to settle their debts.
“The local authority is failing to fulfill its service delivery obligations because our coffers are running dry as debtors, who include residents and businesses collectively owe $1,4billion.
The debt increased from $1,1billion as at 31 December. Residents owe $497million and businesses owe $959milllion,” said Mr Masimba.
He said council is now considering a raft of measures to force defaulters to settle their debt.
“We are in the process of implementing stringent debt recovery measures such as demand letters, summons, attaching property, writs of execution of property and disconnections.
It is hoped that defaulters will be forced to settle their debts and on time.
We want to intensify these debt recovery measures in a bid to improve service delivery,” said Mr Masimba.
He said residents were entitled to quality service delivery, a development he said was being hampered by lack of resources as council coffers remained subdued due to nonpayment of debts by ratepayers.
Ratepayers, Mr Masimba said, expect service delivery but they are not settling their rates and services bills which severely affects council service delivery operations.
“We have fuel challenges because we charge in local currency but service stations charge us for fuel and other consumables in foreign currency and that affects refuse collection and the general service delivery to the city,” he said.
The Parliamentary Portfolio Committee on Public Accounts last week said local authorities should be allowed to charge companies involved in exporting or selling products in foreign currency in forex.
Chairperson of the committee Mr Brian Dube said that would help local authorities improve service delivery.
Rate payers, especially in urban areas, have to cope with persistent water shortages, uncollected litter, pothole infested roads and sanitation problems as municipalities struggle to provide basic services mainly due to unavailability of foreign currency.
Fuel, spare parts and other consumables needed by local authorities to improve service delivery are sold in foreign currency especially the United States dollars yet local authorities are charging rates and services in local currency.
Online Reporter