Residents up in arms over council interest rates

Midlands Bureau Chief
GWERU residents are up in arms with the local authority which effected a 19 percent interest rate on defaulting accounts.

While council said the 19 percent interest was effected in February and stopped in June- residents are still receiving bills with the interest.
Residents owed the local authority about $760 million as of 31 May, up from about $463 million on December 31.

Council two months ago took the litigation route which saw defaulting residents’ property being attached by the Messenger of Court.
In an interview, Gweru City Council spokesperson Ms Vimbai Chingwaramusee said the 19 percent interest on residents’ accounts was aimed at making them settle their debts.

“It’s financial knowledge that if you are owing you pay interest. So, we encourage people to pay. To avoid the loss of value you put interest when someone pays later. There is no loss because the supposed loss will be covered by the interest,” she said.

Council, Ms Chingwaramusee said, is in business to provide quality services to residents.

“We are in business to provide quality service delivery of which these services cannot be provided if people do not pay or if they delay to pay and the money loses value,” she said.

Gweru Residents and Ratepayers Association (GRRA) director Mr Cornelius Selipiwe blasted council for the 19 percent interest which he said was inhumane.

“I don’t see any justification for the 19 percent being introduced in the first place…I still don’t get the rationale behind this annual interest. One is failing to pay and you put 19 percent on that same person and expect that person to pay. Really that will not work. The removal of this 19 percent would mean lessening the burden of residents and giving residents the drive to pay,” he said.

Gweru United Progressive Residents and Ratepayers Association director Pastor David Chikore said they have been engaging the council to remove the interest on overdue accounts.