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Yeukai Karengezeka Herald Correspondent
Chitungwiza Municipality has terminated its contract with Wellcash Debt Collectors following a directive from the Government. The termination comes in the wake of calls by residents that the contract was abusive and illegal.
Dr George Makunde confirmed the termination in an interview with The Herald.
“Yes, it is true that we terminated our contract with Wellcash last week after we received an instruction to do so from the Ministry of Local Government, Public Works and National Housing,” he said.
Mr Makunde, who declined to go into detail, said the termination was going to have a negative impact on service delivery.
“It is quite unfortunate that service delivery will be affected,” he said. “We were doing our best using the money which was being collected by the company to render services to our clients.”
The local authority engaged the company early this year after residents ignored the municipality’s pleas to either settle their dues or come up with payment plans.
The contract was supposed run until February next year.
According to council finance director Mrs Evangelista Machona, Wellcash used to remit an average of $50 000 per month.
Online Reporter