Gweru owed over $80 million

Mejury Magaya, Business Reporter

GWERU City Council (GCC) says it was owed over $80 million by businesses and residents as at December 2019, and this is negatively impacting on the local authority’s ability to offer improved service delivery. 

Addressing a Press conference yesterday, Gweru Mayor Councillor Josiah Makombe said non-payment of rates by companies and residents negatively affected operations of the council,  which was now failing to meet its service delivery targets.

“The council is owed large sums of money by residents and the business community in excess of $80 million as of December 31 last year. 

“We are owed over $80 million by residents and companies and instead of the debt decreasing, it is inflating. 

“However, we continue working towards recovering the debt through the revenue enhancement team, which was put in place sometime ago,” he said

“With the impending drought, soaring inflation and forex challenges, as council we should play our part in creating a conducive economic environment in the city.”

Clr Makombe said service delivery is now being compromised as council’s main source of income is dwindling because of defaulting residents and companies.

“Critical service delivery issues like water supply, roads rehabilitation, sewer reticulation and solid waste management have been negatively affected by non-payment of the council debt,” he said. 

Clr Makombe said council had gone a step further to reduce tariffs in a bid to woo its debtors to settle what they owe the local authority.

“The reduction of tariffs is meant to motivate residents and companies that owe the council to come forward and make payment plans so that the service delivery can improve,” he said.

As part of GCC’s debt recovery initiative, the revenue enhancement team was also extending discounts to residents and companies willing to settle their debts.

“There are discounts on offer for those paying their debts in full or making payment plans.

“So, we urge residents and companies to come forward and settle their debts,” said Clr Makombe.