adminNyore Madzianike Manicaland Bureau
THE Mutare City Council is owed about $50 million in outstanding debts by residents and ratepayers, with the figure said to be ballooning with each passing month.
In a statement, council said Government departments and other corporates were the major debtors.
“Council is owed $50 million by residents, Government departments and corporates and the figure increases every given months as people default on their monthly dues,” read part of the statement.
Council public relations officer Mr Spren Mutiwi said they were facing difficulties in recovering the debts from the ratepayers.
“Council in its bid to recover the outstanding amount is busy engaging residents with a view to coming up with payment plans,” he said. “The process is going on well, as people prefer engagement instead of punitive measures.
“Secondly, we have come up with payment plans and residents are being encouraged to take advantage of the window period to settle their dues.”
Mr Mutiwi said the process was being frustrated by some ratepayers who were not honouring their payment plans.
He encouraged them to follow through their payment plans with council.
“The process has its own challenges, most of the people who entered into the payment plans are defaulting and council has not been able to derive meaningful revenue from this,” said Mr Mutiwi. “We encourage residents to stick to their payment plans.
“For those who have defaulted we will surrender them to law firms who are enforcing the debt collection process on behalf of council. Some of the residents are resisting the process, and that has also affected the council’s revenue generation. For some we encourage set- offs especially corporates whom we also owe.”
Mr Mutiwi said council was solely dependent on money it collects from ratepayers as it does not have viable income generating projects.
Online Reporter