HomeNews$7m debt cripples Zvishavane

$7m debt cripples Zvishavane


ZVISHAVANE — The local authority says it is hamstrung by Shabanie Mine’s $7 million rates arrears which have remained unpaid since 2009.

Council’s internal auditor and former acting secretary Maxwell Mugandani told NewsDay early this week that the asbestos mining company’s debt had crippled service delivery.

“We are owed a total of $10 million with 70% of the debt being owed by Shabanie, while $3 million is owed by residents and other companies operating from here,” said Mugandani. Acting town chairperson Patson Taruvinga said although the mine had now started paying around $10 000 a month towards the debt, the amount was too little.

“We are going to open dialogue with the mine so that they improve on their payments because we have noticed they are paying around $250 000 a month towards power bills at Zesa. So we believe they have the money,” said Taruvinga.

“We had intended to buy a refuse compactor and earth-moving equipment to ensure that we develop stands to meet the growing demand, but these projects have been put on ice owing to a liquidity crisis caused by nonpayment, especially by Shabanie Mine,” he said.

Taruvinga, however, said council had rolled out some major projects which included purchase of a fire tender.

“We have bought a $49 000 fire tender although we are yet to take delivery. We have put up two solar-powered robots in Zimbabwe’s fastest growing town and we are looking to do more in terms of service delivery,” said Taruvinga.

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