By Beatific Gumbwanda
CHIREDZI-Embattled Chiredzi Town Council (CTC) recently resolved to engage debt collectors in a bid to recover an accruing ZIG 54 million in rates arrears.
This was resolved in a full council meeting recently held at the Council boardroom TellZim News can report.
The local authority, which was enforcing debt payments through water disconnections changed strategy and decided to engage debt collectors to recover the excess amount to promote service delivery.
Speaking during the full council meeting, CTC Town Secretary, Engineer Wesley Kauma said the local authority had set targets for the Financial Department to increase revenue collection to at least 75 percent and engaging debt collectors was one of the strategies.
“We have set targets for the Finance Director that we need revenue collection to shoot to 70 percent and these are some of the measures that are being put in place and engaging debt collectors is one of the strategies,” said Kauma.
CTC Finance Committee Chairperson, Councilor Vimbai Ushe said her committee found it suitable to engage debt collectors in order to recover what the local authority was being owed by residents in refuse collection, sewer and rates.
“We resolved to engage debt collectors to recover what the local authority is being owed in rates, sewer and refuse collection and we are confident that this will be helpful” she said.
However, Ward 7 Councilor, Brighton Mahiya was against the idea. He blamed the Finance department for failing to find other ways to persuade residents to honor their debts.
“Have you separated the bills, because I understand these bills are just sent as a single unit to the residents?
“Have you exhausted all other avenues to persuade residents to honor their bills as engaging debt collectors will be more damaging as the debt collector will require at least 10 percent of the owed amount from the debtor, who is already failing to pay the council not because he/she does not want to but will be failing to raise the amount,” said Mahiya.
Ward 7 councilor, Costain Mombe said house owners were to blame for not paying to the local authority despite having been paid by tenants.
“Landlords are being paid by tenants but they are not bringing the money forward to the local authority and it will be hard for the tenants to follow up,” said Mombe.
Finance Director, Llyod Chimusasa said the local authority was being owed ZIG36 million in water, ZIG 39 million in rates, ZIG6,3 million in sewer reticulation and ZIG8,7 million in rentals
