Redcliff withdraws debt collectors

Michael Magoronga in Kwekwe
Redcliff Municipality has decided to withdraw the services of a debt collector after revenue inflows from residents improved. It is believed that residents are settling their obligations after Ziscosteel took measures to repay its former employees after receiving a $38 million kitty from Government.

The steelmaker’s ex-employees are owed more than $58 million. As a result, the local authority has withdrawn the services of Magodora and Well Cash Debt Collectors.

Redcliff’s finance committee chairperson Councillor Clayton Masiyatswa said revenue for the past three months has improved after former employees started receiving outstanding salary arrears.

“Revenue collection has dramatically improved at the local authority. Revenue inflows were less than $100 000 per month, but have since improved to over $200 000 per month and we attribute this to the cash injection Ziscosteel got from Government. After council noticed the upward trend of the revenue, we have decided to sever ties with our debt collectors as a result,” said Cllr Masiyatswa. The municipality’s initiative to sell houses to sitting tenants had also significantly boosted revenue inflows.

“We have a cost code with Ziscosteel where the company collects money for housing units on our behalf. Council is also working to put in place systems where we will have door-to-door visits with Point of Sale (POS) machines so as to ease transaction challenges for ratepayers and also to boost our revenue,” said Cllr Masiyatswa.

Acting finance director Ms Lindiwe Whata said her local authority was owed $22 million, with Ziscosteel owing the council $12 million. Government recently signed a contract with Hong Kong-based R and F Investments, which is expected to invest more than $1 billion to revive Ziscosteel.