adminWalter Mswazie, Masvingo Correspondent
MASVINGO City Council has resolved not to charge interest on outstanding water charges owed by Government departments.
According to the latest council report the Government departments and other institutions that include hospitals and schools now owe council over $20 million in unpaid rates.
Council is now working on setting up a debt management team whose mandate will be to formulate effective debt management and revenue collection strategies to be able to recover the outstanding money.
“Consideration was given to the report of City Treasurer Mrs Thandiwe Dube on institutional debtors as at April, 30, 2017.
“It was reported that a total of $20 464 029 .35 was outstanding. The need to remove interest on unpaid amounts for Government was noted,” reads the report.
However, concern was raised on Victoria High School and Helen McGhie Primary School over their outstanding unpaid rates and it was resolved that water supplies be suspended to these two institutions.
“It was resolved to recommend that the city treasurer be instructed to disconnect water supplies to Victoria High School and Helen McGhie primary School for non-payment of water and other service charges.
“It was also resolved that the Town Clerk Mr Adolf Gusha be instructed to set up a debt management team whose mandate would be to formulate and strengthen debt management and revenue collection strategies in council.”
Mr Gusha said the resolution not to add interest on Government’s outstanding debts is in response to the nation’s economic challenges.
“We have considered Government’s financial position and decided not to impose any interest on outstanding debts. We are also doing this as to motivate them to pay,” said Mr Gusha
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