adminGovernment, businesses and residents now owe Harare City Council (HCC) over $733 million in unpaid bills, a situation that has virtually paralysed the local authority’s operations.
In recent minutes of HCC’s finance and development committee, acting finance director Mr Godfrey Kusangaya said council presently owes its creditors more than $437,8 million.
The local authority believes the obtaining economic challenges are adversely affecting ratepayers’ ability to pay their bills.
“Actual collections amounted to $34,61 million (January 1 to February 28 period).
“Debtors were reported at $733, 46 million, while creditors were reported at $437, 75 million,” reads the recent minutes.
Mr Kusangaya said the city has since set aside $72 million to begin servicing its $144 million debt to China-Exim Bank this year.
The $144 million facility, which carries a 3 percent interest rate over a nine-year period, was used to rehabilitate Harare’s waterworks.
“A total of $21,07million was owed to CABS, while a total of $144 million was owed to Exim Bank of China, of which $72, 2 million had been committed and repayment will commence on a date yet to be agreed on,” he said.— Herald Reporter.
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