Kwekwe consults over USD bill payments

Michael Magoronga Midlands Correspondent

KWEKWE City Council is consulting stakeholders as it seeks to introduce a 50 percent discount for all bill payments made in US dollars with a view of boosting its foreign currency revenue collection to pay its suppliers.

There is a degree of support in the city, but ratepayers are also wary and as one put it “we do not want to see top officials driving new vehicles”.

This comes at a time when the local authority is owed about $2 billion by ratepayers and has been struggling to render basic service delivery. Among the major debtors, Redcliff Municipality owes Kwekwe City about $100 million for water supply. Although the figure could not be ascertained, council also owes a huge amount to service providers, most of which are now demanding US dollars.

In a bid to stay afloat, the local authority now seeks to boost its foreign currency coffers and wants an incentive for ratepayers who pay bills in foreign currency. Speaking during a consultative meeting with Ward Development Committees on Wednesday, assistant director of finance, Mrs Tsitsi Chitsa, said the local authority will offer a bonus of up to 50 percent if one pays their bills in US dollars.

She was quick to dismiss the notion that the council was introducing US dollar payments alone, saying they were only encouraging those who can make their payments in US dollars.

“The bonus will help lure ratepayers to use the much-needed foreign currency that we need when settling council bills. The city’s foreign currency requirements continue to rise and with the US dollar bonus payments, service delivery will be guaranteed and procurement of equipment will be made easier,” she said.

Mrs Chitsa said the bonus would not apply to land sales, but would be useful to buy water treatment chemicals whose suppliers require cash up front, in US dollars.

“I can give you an example of water treatment chemicals, which gobble a huge chunk of our revenue. They require cash up front and in foreign currency. This has made it difficult for us to access the chemicals,” she said.

If successful, she said the council workers may also be paid partly in US dollars. “There is a massive incapacitation of workers as we pay them in local currency. So, with this bonus, council will pay part of the collections to employees,” she said.

Mrs Chitsa said the local authority was also introducing a five percent interest to ratepayers with outstanding bills so as to discourage them from deferring payment of council bills.

“It’s known that most clients defer paying council bills unless drastic action like water disconnection is taken. Against this background of continued price hikes and inflationary pressures, it is prudent to charge interests on unpaid bills,” she said.

Kwekwe City has so far engaged ward development coordinators, business community and the churches who all have accepted the council proposal.

A resident, Mr Nkosilathi Moyo, said the move was noble but the money should not be channelled towards purchasing vehicles for senior management. “I see the idea as noble in the sense that inflation is increasing by the day and so are prices, which makes it difficult for service delivery by any institution,” he said.

“However, we don’t want a situation whereby we see senior management driving brand new vehicles at the expense of service delivery.”

The local authority is set to write a proposal to Government seeking approval.