adminNqobile Tshili, Chronicle Correspondent
TREASURY has embarked on a debt offset programme to settle $37 million owed to local authorities’ by the government in unpaid rates and water charges.
Responding to a question on behalf of the Minister of Finance and Economic Development, Patrick Chinamasa, in the Senate recently, the Deputy Minister of Livestock and Agriculture, Paddy Zhanda, said treasury plans to reduce the amount owed to municipalities’.
“The above budget constraints notwithstanding, treasury has and will continue to progressively reduce line ministries’ and departments’ arrears to local authorities by knocking off outstanding tax obligations against these arrears,” said Zhanda.
“As at 31st March, 2016, Government owed local authorities US$36.8 million for rates and water services with the major creditors being City of Masvingo, US$16,671,786; City of Harare, US$16,499,618 and City of Bulawayo, US$1,940 ,044.”
He said Victoria Falls Council is owed $226,136, Kwekwe City Council, $146,696; Hwange Local board $62,321 and Lupane Town Council, $57,360, among other local authorities.
Zhanda was responding to a question posed by MDC-T senator for Manicaland David Chimhini who wanted to know about the strategies being implemented by the government to clear its debt to local authorities.
The Deputy Minister said the army, police, hospitals and the Ministry of Local Government, Public Works and National Housing were the major debtors.
“Furthermore, treasury is collaborating with both Government ministries and departments and local authorities on mechanisms of managing the consumption of water services, cognisant of structural infrastructural leakages and institutional wastage,” said Zhanda.
He reassured senators that the government was committed to reducing its debt as local authorities should not be compromised in their quest to deliver services.
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