Masvingo reels from $30 million debt

Walter Mswazie, Masvingo Correspondent
MASVINGO City Council is owed more than $30 million in outstanding water bills by residents, government departments and industries, a situation which officials say is compromising service delivery.

The city’s mayor Councillor Herbert Fidze said the debt shot from about $27 million last year to $30 million by March this year.

He said government departments, industries and companies account for more than 70 percent of the total debt.

Fidze said the municipality was contemplating engaging debt collectors to pursue the defaulters.

According to the latest full council minutes, there is no consensus on the issue of engaging debt collectors.

The Town Clerk Adolf Gusha was said to be of the view that there should be a cut-off point for those to be handed over to debt collectors after considering what is owed.

“The city treasurer, Thandiwe Dube, highlighted that the system would apply to all types of debtors but Cllr Godfrey Kurauone raised fears that council would face challenges with residents in engaging debt collectors.

He suggested that debt collectors be engaged for institutions and businesses only and leave out residential areas,” the council minutes said.

Gusha said the idea of engaging debt collectors was not to penalise residents but to assist council to instil a culture of paying bills in residents.

“The committee agreed that before sending debt collectors, management should send final letters of demand to all debtors warning them of council’s intention to take the legal route to recover its debts.

It was resolved that Dube should be instructed to issue final demand letters to all debtors in the city as an interim debt collection strategy,” reads the report.