By Perpetua Murungweni
Masvingo City Council is being owed approximately US$9 million by debtors recording a 9.52 percent increase in debt this year.
This was revealed in the Finance and General Purpose Committee meeting minutes, which revealed that council is being owed ZIG$130, 905, 815.45 which translates to a sum of US$9, 218, 719.40 Million.
“Debtors as at June 30, 2024 is ZIG 130, 905,815.45 which is on the increase owing to non-payment of council bills,” reads the minutes
The debtors are classified as low density and high density residential, commercial and Government departments.
“Covering debtors by category, there is low density and high density residential, commercial and government departments,” read the minutes.
On the other hand, the local authority is also drowning in debt, struggling to pay its service providers an excess of around US$1.2 Million.
The same minutes indicate that the local authority is owing some of its service providers around ZIG17, 884, 667.4 million, which translates to US$1 259 483.62 million.
In the minutes, the committee resolved to increase debt collection efforts in order to settle its own debts to critical service providers.
“On the concerns by the committee to pay off the ZESA debt and current challenges, it was agreed that council should strive to collect its debts from government departments and other institutions and pay off critical creditors,” read the minutes.
Council owes ZIMRA a sum of ZIG 2,111,783.19, NSSA a sum of ZIG 90, 838.14, LAPF a sum of ZI 4, 242, 187.03, ZIMDEF a sum of ZIG 496, 422.09, ZIG 276, 700.95 for, Standards Levy, Workers Unions a sum of ZIG 530, 633.73, owing ZESA a sum of ZIG 7, 545, 489.98 and owing Medical Aid Fund ZIG1, 771, 612.29.
