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THE City of Kwekwe and Redcliff Town are faced with a delicate situation in implementing a Government directive to cancel residents’ water and rates bills because of Ziscosteel, a corporate organisation.Kwekwe supplies treated water to Ziscosteel which in turn gives Redcliff Municipality water for both commercial and domestic consumption
Ziscosteel is said to owe Kwekwe more than $12 million in unsettled water bills.
However, both Kwekwe and Redcliff confirmed in separate interviews to have written-off all their domestic consumers’ debts in line with a Government directive to clear all debts accrued by residents between February 2009 and June this year.
Interestingly Ziscosteel remained saddled with more than $12 million water debt to Kwekwe and an undisclosed amount in unpaid rates to Redcliff Municipality.
Kwekwe Town Clerk, Mr Ngwena Musara, said the Midlands gold city successfully implemented the Government directive of reversing residents’ water and rates debts.
“We were only looking at whether one is a domestic consumer or not in this exercise.
“The council has written to all its domestic consumers informing them of this development.
“They have since received revised statements indicating that their bills between the periods February 2009 and June this year, have been cleared.
“We did not touch industry and commerce consumers because the Government directive did not include them. Ziscosteel is like any other corporate organisation. It has its own water bills and just like the other corporate organisation, it will service its debt with us,” he said.
Mr Musara said council will continue supplying water to Ziscosteel as it expects the company to clear its arrears.
“We know Ziscosteel supplies water for domestic use to Redcliff but we are not exactly privy to how the two will handle the water and rates challenge.
“It is not our business to interfere in the management affairs of another town or organisation.
“Our client is Ziscosteel, which is a corporate organisation. That is where our interests start and end,” said Mr Musara.
Redcliff Town Clerk Ms Elizabeth Gwatipedza said her council held a meeting with Ziscosteel management last week on the way forward following the Government directive to reverse domestic consumers’ water and rates bills.
She said the steel company owed Redcliff money in unpaid rates.
“At the meeting we resolved that Ziscosteel should pay for rates. We have a unique relationship where they (Ziscosteel) invoice us for the water they give us while we invoice them for the rates account.
“We used to service our water bill from the money they were supposed to pay us for rates. As things stand, we don’t owe Ziscosteel anything, in fact they owe us money in outstanding rates.
“They are a corporate organisation and we cannot write-off their bill. They would still owe us money anyway, with or without the Government directive to reverse bills,” said Ms Gwatipedza.
The Redcliff Town Clerk said her council was in the process of writing-off domestic consumers’ water and rates debts.
She said the process started late owing to the municipality billing system challenges.
“We have been holding meetings in all the suburbs to explain the new position.
“We had sent water bills to residents which did not reflect that the outstanding money had been written off. Our teams have since rectified that and residents are now aware of the development,” said Ms Gwatipedza.
Online Reporter