adminThis is also meant to rescue the city from a crippling financial crisis that has seen the local authority rely heavily on debt financing for all its capital projects.
Harare is owed over US$400 million by Government, residents and the commercial sector for rates, water, refuse collection and other services.
The decision was reached by the full council at its monthly meeting on Tuesday following failure by council to rein in defaulters who have ignored final letters of demand and company visits. The city has also been using water disconnections to enforce payment of bills but because water delivery is at its lowest the council can no longer use that method to force bill settlement. Only 40 percent of households in Harare are receiving water.
Residents have also cited poor service delivery as a reason for not paying while studies have shown that the high unemployment rate caused by illegal sanctions has incapacitated many people who can no longer sustain urban life. The offer is only valid until December 31 following which debtors failing to clear their debts would have the discount reinstated.
“Council authorises the city treasurer to award discounts of 30 percent on arrears on commercial and residential debtors who settle their current bills plus the outstanding arrears in full within the period up to 31 December 2013,” reads part of the minutes.
But residents and commercial enterprises that have been up to date with their payments would only enjoy a 20 percent discount from July to December.
Online Reporter