Online Reporter
Patrick Chitumba Midlands Bureau
Zimbabwe Iron and Steel Company owes Redcliff Town Council more than US$15 million in unpaid water bills, with the local authority now intensifying efforts to recover the debt amid worsening financial pressures affecting service delivery.
Acting town clerk Mr Nyararai Gomba said council was continuing engagements with Ziscosteel management while also considering alternative strategies to recover the outstanding amount.
“It is still work in progress. We are still trying to engage the management of Ziscosteel and come up with other strategies on how we can recover the money,” he said after a full council meeting.
Mr Gomba said the debt remains one of the local authority’s major financial concerns at a time when council is battling revenue collection challenges and increasing demand for service delivery.
The arrears relate to water supplied to the former steel giant before it ceased operations.
“We are exploring all legal and administrative avenues. Recovering the funds would give a major boost to the town’s budget,” he said.
Ziscosteel, once Zimbabwe’s largest integrated steel producer and the economic backbone of Redcliff, stopped operations years ago following prolonged financial and operational difficulties.
The collapse of the steel company severely affected Redcliff’s economy, resulting in job losses, declining business activity and reduced revenue inflows for the local authority.
Bongani Ndlovu