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Michael Magoronga, Midlands Correspondent
ZIBAGWE Rural District Council (RDC) has engaged traditional leaders to encourage their subjects to pay development levies as the local authority explores several options to boost its revenue base.
The rural authority has also dangled a 50 percent discount carrot to miners with outstanding debts as at 31 December last year as another way of improving council revenues.
This comes as the council is owed about $1,2 billion by debtors which continue accruing due to non-compliance by debtors.
On the other hand, Zibagwe RDC owes $253 million to its creditors.
Speaking during a recent full council meeting, the chief executive officer, Mr Farayi Desmond Machaya said the council will continue exploring ways of engaging debtors to pay up as the development was impacting negatively on council operations.
“Our debtors have continued to increase owing to non-compliance and engagements are being made with individual clients to encourage them to pay,” said Mr Machaya.
“Further we have since written final demand letters to improve revenue collection. The non-compliance by our debtors is putting a strain on our ability to service our obligations as they fall due.
“We are however, optimistic that revenue will improve and we will be able to liquidate our creditors,” he said.
Mr Machaya said chiefs play a critical role in encouraging their communities to pay development levies.
“We held a meeting with traditional chiefs in March where we requested them to encourage their respective communities to pay development levy in time in order to improve development in their respective localities.
“They have an obligation with respect to development levies as stipulated in the Traditional Leaders Act (Chapter 29:17) Section 12 (j) that village heads are responsible for collecting development levies,” he said.
Mr Machaya said in the next meeting, they will also rope in village heads for further deliberations on development levy.
On miners, Mr Machaya said the discount period ends on April 15.
“We are offering a 50 percent discount to miners for outstanding debts as at December 31, 2022 in order to improve council revenues. The window period for the discount closes on April 15,” he said.
Mr Machaya said to date the council has recorded a 22 percent billing efficiency.
“The cumulative total billed to date in now $702 million against a projected budget of $3,2 billion which translates to a billing efficiency of 22 percent. Our thrust is to ensure that by year end our billing efficiency would have reached 100 percent,” he said.
As at March 31, the council had recorded a 5,5 percent budget performance.
“Revenue collected as at March 31, 2023 amounted to $175 million which is 5,5 percent of our local revenue budget of $3 billion. The average month to month revenue for the first quarter of the year 2023 is $58 million,” said Mr Machaya.
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