… resolution to be implemented with immediate effect
Tinaani Nyabereka
Gweru- City Council on April 25, 2022 resolved to effect a five percent interest penalty on all debtors with immediate effect.
The resolution was passed following the accumulation in debt from both residents and the business community.
Recently with regards to debt accumulation, council revealed that domestic customers owed council approximately over ZW$ 600 million and while the business community owed council over ZW$ 1billion.
Speaking during the 693 ordinary council meeting held in Gweru, a member of the Finance committee and ward 10 councilor Charles Chikozho said as a committee they were working on mechanisms to recover all debts as a local authority.
“We are coming with mechanisms which we think will help us in our revenue flows. We are trying to recover what we are owed by residents and business community. This five percent interest is coming as a credit and debt collection mechanism which will help us recover our money.
“The five percent interest we are proposing is not meant to ‘fix’ residents because we have genuine residents who are paying their bills, but we have some who have since shunned their bills for good. Those not paying are the ones who are likely to be affected by this penalty. To those who are paying their bills, we greatly appreciate and consider their efforts towards improved service delivery,” he added.
Ward 17 councilor Farai Muza said council is in need of money to run its operations.
“Let’s not take the issue of debts lightly. As council, we need money to run all operations like what councilor Chikozho has said. So a robust mechanism is needed to address the issue of debt at hand,” said Muza.
Ward 15 councilor Trust Chineni the Environment, Works and Town planning chairperson said most operations and projects proposed by the committee require resources.
“As a committee, we are really pushing the finance committee to look for money because for us to be able to implement most of the projects on the environment we need money. The five percent interest proposal comes in to push the finance team so that they come up with more ways to raise revenue.
“If sewer blocks, we need rods, cars and fuel to attend on the ground. Right now we are failing to purchase fuel because garages need forex and as a local authority we are only allowed to charge our services in local currency. As long as we are not looking for other mechanisms we will not be able to offer services to our residents on time,” he added.
Gweru Mayor and ward 1 councilor Hamutendi Kombayi said as a local authority there was need to craft a policy which enables the collection of foreign currency for improved service delivery.
Ward 12 councilor Jefta Zvidzai however said as the interest rate was being effected, there was need to reconsider that most of the ratepayers in the community are the elderly and vendors who are struggling due to economic hardships.
“As we effect this five percent per annum, let’s also consider that we have people who religiously pay their bills. We need to take note of such ratepayers as their efforts have kept council afloat.
“We also have vendors and the elderly who are struggling to honor their bills due to financial constraints, some are being charged forex on their market bays and shops yet they sell their products in local currency and at the end of the day they struggle to look after their families.
“Let’s effect such measures knowing that we are dealing with people who are facing challenges as well,” Zvidzai said.
Gweru council deputy mayor Cleopas Shiri highlighted the need to notify residents of the resolution.
“As council we need to demarcate when implementation can start, remember as we come here we are representing people and we need to go back and tell the people on such developments in our various wards.
“We also need the applicability of the five percent whether it is introspective or retrospective” he said.
… As residents bemoan lack of consultation on critical resolutions
Gweru residents have expressed concern over the non-payment of rates penalty saying engagement was always key in having such resolutions.
Gweru Residents and Ratepayers Association (GRRA) director Conerlia Selipiwe said engagement was the way to go for residents to know what is happening.
“Council should always consider the input of residents by engaging and consulting them before making some resolutions that affect them,” said Selipiwe.
Gweru United Progressive Residents and Ratepayers Development Association (GUPRARDA) in a statement issued by its director Pastor David Chikore cautioned residents on the need to avoid debt accumulation.
“This statement serves as a plea to all of us as Gweru residents and ratepayers to honor our monthly bills so that we do not accumulate debt, which might prove crippling in future. For those with outstanding balances accumulated over previous months, we are pleading with you our fellow residents to either clear those debts, if you can, but where finances are constrained, we urge you to pay a decent portion of your accumulated debt.
“It is common knowledge that most of us have grievances with council and service delivery and/or billing system, but let’s operate from a position of strength by vigorously fighting for our rights,” he said.
