Online Reporter
Patrick Chitumba, [email protected]
SHURUGWI Town Council (STC) is facing a severe financial crisis, struggling to recover approximately US$6,4 million in outstanding revenue for 2025 from defaulting residents and ratepayers.
The council’s outstanding debts to suppliers and service providers for 2025 amount to approximately US$1,1 million, a sum significantly lower than the revenue owed to the council.
This disparity underscores a growing financial imbalance within the authority’s accounts.
STC chairperson, Councillor Fanuel Machiya, told a recent full council meeting that non-payment of water, rates and other services by residents and ratepayers has led to this negative development.
“I can confirm that council is owed about US$6,4 million. The bulk of this money is from residents who are not paying their rates, as well as businesses,” he said.
Clr Machiya said in the event that both residents and ratepayers settle their council debts, STC would not struggle to clear its outstanding financial obligations.
“If people pay what they owe, council will be able to fund development projects, including the purchase of yellow machinery.
“Measures have been put in place to compel defaulters to settle their debts,” he said.
Clr Machiya indicated that the local authority’s outstanding bills to suppliers and service providers for 2025 stand at about US$1,1 million, far lower than the amount owed to council, highlighting a growing imbalance in its finances.
Addressing the same meeting, Town Secretary Mr Archbold Ncube said this negative development is having a debilitating impact on service delivery, with crucial development projects being delayed as a result.
The Town Clerk indicated that the local authority is urgently seeking solutions to address the financial squeeze, which is affecting the delivery of essential services to residents.
“As STC, we are going to consider intensifying internal debt recovery mechanisms while avoiding punitive measures against struggling ratepayers.
“As council, we cannot apply harsh conditions because many debtors are facing economic challenges. We will use internal tracking systems, including payment plans and regular reminders, to recover the money,” he said.
Mr Ncube said because of the non-payment of debts by the key stakeholders, the local authority was lagging behind on terms of service delivery.
“There are critical projects that require funding, such as the acquisition of service delivery equipment. Our grader is now obsolete, and we urgently need a replacement,” he said.
Council records show that Government ministries are among the major debtors, owing the local authority over US$536 000.
Residential leaseholders owe over US$995 000, while Impali land sales account for US$3 million, Housing land sales and leases stand at US$4 million, making them the largest contributor to the debt pile.
