adminAbel Zhakata Senior Reporter
THE Mutare City Council is crying foul after the Zimbabwe Revenue Authority pounced on its bank accounts and garnished a whooping $477 000 in unpaid PAYE and Value Added Tax arrears yet the local authority is owed over $1 million by Government departments for services rendered. Town Clerk, Mr Obert Muzawazi, revealed this week that the debt council owed to Zimra was supposed to be offset by the amount Government institutions owe the local authority, through an arrangement with the Ministry of Finance and Economic Development, but the tax collector unilaterally pounced on its bank accounts.
“It is unfortunate that we have institutions that are divorced from the reality. It was agreed that there would be a debt swoop arrangement through the Ministry of Finance but nothing has been done. When every cent that you have is taken in an instant that tantamount to destroying an organisation.
“We have several Government institutions that owe us money but we cannot be seen cutting services to them because we eat from the same plate. Council is struggling to pay workers and various other service providers and what you hear the next morning is that your bank accounts have been swept clean,” he said.
Finance director Mr Lloyd Musasa said the local authority was now operating in the negative following the garnish order. “Our bank accounts with CBZ and FBC were targeted from October 23 to November 6 resulting in a total of $477 075, 00 taken by the tax collector. “As we speak our books are in the red and this has a telling effect on service delivery because we don’t have money to pay workers and other service providers.
“On the other hand we are owed about $1,14million by Government departments for water, sewage and refuse collection. We are not being paid a cent. There was an arrangement that there will be a debt swoop through the Ministry of Finance but nothing has been done. In July this year we send our schedule to the Ministry of Finance with the amounts that we are owed by State entities to the tune of $774 000 but no action was taken. That figure was supposed to be deducted from the amount that we owe Zimra.” he said.
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