BULAWAYO City Council (BCC) is owed a total of $112 million in unpaid rates by government, industry and residents, latest council minutes revealed.
BY NQOBANI NDLOVU
Latest council minutes of the finance and development committee show that the BCC is owed $112 365 078 as of August, a near $2 million increase from $109 365 066 as of July.
Various government departments owe the local authority $3 488 640, while commercial debtors and domestic consumers owe the council $45 481 825 and $63 394 613 respectively.
Council says the failure of the government and other debtors to settle their bills is choking its operations and further putting a strain on its budget.
Most residents stopped paying bills after the courts blocked local authorities from cutting water supplies at houses.
This has resulted in council failing to settle $104 466 321 arrears to various creditors, including its employees. The council is in two months’ salary arrears “due to cash flow constraints,” the minutes read.
“ . . . shows aggregate debtors’ figure of $109 365 066 at the beginning of August 2015 which increased to $112 365 078 at the end of August 2015. The increase is as a result of inadequate payment of outstanding debt by some consumers.”
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The local authority has since embarked on water disconnections for defaulting customers, mainly residents, but spared government departments.
“At the beginning of the month $2 915 080 was owed by the government.
“The debt increased to $3 488 640 by the end of August 2015 due to non-payment of the accounts by some departments,” the minutes added.
The Education and Culture ministry tops the list of government debtors, with a $1 383 582 debt.
Bulawayo deputy mayor Gift Banda recently said the government departments cited the tight economic situation for their failure to settle their bills on time, and clear outstanding debts.
The Zimbabwe National Water Authority is the second largest debtor with its bill standing at $1 136 070, Home Affairs $576 796 Ministry of Health 279 357, Public Works ministry $273 952, and Higher Education $190 026, while other ministries owe the local authority less than $30 000.
The Agriculture ministry owes the least with its bill standing at $922, down from $1 404 recorded in June.
The Urban Councils’ Association of Zimbabwe has on numerous occasions urged the government to clear arrears so that local authorities can provide efficient service delivery.
