THE cash-strapped Chitungwiza Municipality has started deploying debt collectors to recover about $27 million it is owed in unpaid rates. ST...
THE cash-strapped Chitungwiza Municipality has started deploying debt collectors to recover about $27 million it is owed in unpaid rates.
STAFF REPORTER
This comes as residents have threatened a rates payment boycott to protest poor service delivery.
The local authority recently claimed that the debts had stifled its efforts to pay workers over the past 14 months.
Chitungwiza mayor Philip Mutoti said the decision to engage the debt collectors came as a last resort after all efforts to raise cash for salaries hit a brickwall.
“We tried to look for loans to enable us to pay our workers and we even tried to talk to government about the matter, but all our efforts were in vain.
“That is why we have had to engage the debt collectors because the only avenue left for us is money from rate payments by the residents,” Mutoti said.
“After we deployed the debt collectors on Tuesday, we saw an improvement in terms of rate payments by the residents and we are hopeful revenue inflow is going to improve so that we pay our workers.”
Two months ago, Mutoti told a public meeting in the dormitory town that his council required about $2 million to pay its 1 720 workers yet they were receiving between $500 000 to $800 000 per month from residents.
“Our appeal to the residents is that they should honour their part so that we can effectively carry our mandate. There is no way council can offer effective service delivery when it is not getting money from residents.
“We need to pay for water from Harare and we also need to pay the workers who are supposed to deliver among many other responsibilities that require cash,” Mutoti said.
Last year, Local Government minister Ignatius Chombo directed all local authorities to write off ratepayers’ arrears for the period February 2009 and June 2013 in a move that was widely viewed as a Zanu PF campaign gimmick ahead of elections
Since then, most residents have reportedly been reluctant to pay rates as they anticipated another debt reprieve from government.
Chitungwiza Residents’ Trust yesterday said it was still consulting residents with a view to mobilise against payment of rates over poor road maintenance, erratic water supply, uncollected garbage and dysfunctional sewer reticulation infrastructure.
STAFF REPORTER
This comes as residents have threatened a rates payment boycott to protest poor service delivery.
The local authority recently claimed that the debts had stifled its efforts to pay workers over the past 14 months.
Chitungwiza mayor Philip Mutoti said the decision to engage the debt collectors came as a last resort after all efforts to raise cash for salaries hit a brickwall.
“We tried to look for loans to enable us to pay our workers and we even tried to talk to government about the matter, but all our efforts were in vain.
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| Chitungwiza municipality deploys debt collectors |
“After we deployed the debt collectors on Tuesday, we saw an improvement in terms of rate payments by the residents and we are hopeful revenue inflow is going to improve so that we pay our workers.”
Two months ago, Mutoti told a public meeting in the dormitory town that his council required about $2 million to pay its 1 720 workers yet they were receiving between $500 000 to $800 000 per month from residents.
“Our appeal to the residents is that they should honour their part so that we can effectively carry our mandate. There is no way council can offer effective service delivery when it is not getting money from residents.
“We need to pay for water from Harare and we also need to pay the workers who are supposed to deliver among many other responsibilities that require cash,” Mutoti said.
Last year, Local Government minister Ignatius Chombo directed all local authorities to write off ratepayers’ arrears for the period February 2009 and June 2013 in a move that was widely viewed as a Zanu PF campaign gimmick ahead of elections
Since then, most residents have reportedly been reluctant to pay rates as they anticipated another debt reprieve from government.
Chitungwiza Residents’ Trust yesterday said it was still consulting residents with a view to mobilise against payment of rates over poor road maintenance, erratic water supply, uncollected garbage and dysfunctional sewer reticulation infrastructure.
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