US$50 million owed: BCC goes after household property

THE cash-strapped Bulawayo City Council (BCC) has resorted to attaching and auctioning property as a way of recovering millions of dollars owed by defaulting ratepayers.

Several city residents risk losing their properties as BCC has since engaged the services of the Messenger of Court.
Over 2 000 households have reportedly had their water supplies disconnected as the council seeks to recover a staggering US$50 million from debtors.

The local authority said of the total money owed, residents owe the biggest chunk

According to the latest council minutes, at least 622 households in Lobengula suburb alone have been referred to BCC’s legal section to recover debts through court proceedings.

However, BCC’s move to dispose of properties belonging to residents and businesses at a public auction has sparked widespread criticism among residents.

In a notice last week, the Messenger of Court informed the public of a public auction of the property. The goods comprise household furniture and shop equipment attached from residents and businesses. The auction was held last Friday, with another one scheduled for 18 July.

Before the auction, bidders are allowed to view items a day before the sale. They are supposed to pay a deposit of US$50 for household property and US$500 for vehicles.

According to the latest notice, at least eight residents were affected after losing their house property ranging from beds to electronic appliances. The bidding process depends on the highest bidder and the amount offered.

Bulawayo Residents Association chairperson, Mr Winos Dube urged residents to settle their bills to avoid litigation, as attaching properties could worsen the plight of already poor residents.

“It is disheartening to see our properties being sold for a fraction of their value without proper consideration for the hardships we are already facing. This action has left many of us in a vulnerable and distressing situation,” said Mr Dube.

“However, it is also important for us, as residents, to settle our dues to avoid litigation.” Last week’s auction worsened tensions between the local authority and residents, with some ratepayers accusing BCC of a lack of transparency and fairness in the debt collection process.

“We don’t agree with this process and BCC should continue to engage with the people. This is not good and they are very inconsiderate of residents given the prevailing economic situation in the country,” said Mr Dube.
“As stakeholders, they should ensure that they constantly engage residents.”

Mr Dube said while they acknowledge the council’s need to address outstanding debts and financial obligations, the residents are calling for a more compassionate and collaborative approach to debt collection.

“Many believe that dialogue and co-operation between the BCC and the community could lead to an amicable solution that takes into consideration the challenges faced by residents and businesses in the current economic climate,” he said.

“Council too should also give residents ample time in notifying them of the intention to cut them off. Water is a right and there has to be a mutual understanding between BCC and residents.”

Contacted for comment, BCC corporate communications manager, Mrs Nesisa Mpofu said: “I have been engaged in meetings the whole day and will revert to your questions as soon as possible.”

Recently, BCC’s legal team and residents’ associations held a meeting during which the council’s representative, Mr Dickson Moyo, warned that residents were at risk of losing their properties through litigation proceedings.

He said the council has an open-door policy that enables residents to engage to avoid the tedious process of litigation.

“Each month, there are statements sent to residents showing the water consumption for the month and the amount they are supposed to pay.

“The water bill states at the bottom the amount due for the particular month, which is a way to remind residents whether their debt is increasing or decreasing,” said Mr Moyo.

“We do this so residents can liaise with our offices if they are facing any challenges or don’t understand their bills.”
Mr Moyo said despite sending monthly statements and notices before disconnections and legal action, many residents ignore them.

“There are processes that are undertaken before all this. Summons are issued beforehand. These come from the courts through the messenger of the court. If the legal section receives a list of houses owing this much, we then issue summons, which we take to the clerk of court for processing,” he said.

Upon receipt of the summons, defendants are given time seven days to respond. “In most cases residents ignore these summons, leading to default judgments.

“When this occurs, a bidding process is initiated and it is done through the messenger of court and not through BCC,” said Mr Moyo.

Government recently directed BCC to improve its revenue collection efficiency by 22 percent during the second quarter of the year.

The council’s debt ballooned to US$52 million in March as residents, industries and Government departments owed the local authority various amounts.

Domestic debtors owed BCC US$29 million followed by industrial and commercial debtors, who owed US$14 million while Government departments owed US$3 million.

The directive to improve revenue collection by Local Government and Public Works Permanent Secretary, Dr John Basera, was part of the conditions of approving BCC’s 2024 budget.

The city’s budget was approved on March 22, with the Government ordering the council to also complete auditing its accounts.—@petematika