HomeNewsHuge debt derails Kwekwe council operations

Huge debt derails Kwekwe council operations

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KWEKWE — A recent audit ordered by Local Government minister Ignatius Chombo has revealed that the $9 million debt owed to Kwekwe Municipality in unpaid rates has severely affected normal service delivery.
Report by Blessed Mhlanga Staff Reporter

According to the audit report released by Chombo’s three-member audit team two months ago, steel manufacturer Ziscosteel and chrome-smelting giant Zimasco, were singled out as the major defaulters at $8 800 586 and $165 319, respectively.

The team had been ordered to investigate allegations of corruption among councillors and top council officials.

“Council’s poor debt collection methods could have an adverse effect on its financial standings as most of its money, which could be used to improve service delivery, is locked up in debts. Council could also fail to meet its obligations and this could lead to a total collapse of systems,” reads part of the report.

“Council has failed to remit its statutory obligations to Zimra (Zimbabwe Revenue Authority), NSSA (National Social Security Authority) and LAPF (Local Authority Pension Fund) as required by the Public Finance and Management Act to the tune of $1 192 898,43 with no provisions being put in place for terminal benefits for its staff upon retirement,” reads the report.

The report also shows council as failing to remit its statutory obligations which are now running into millions of dollars.

The local authority currently owes power utility Zesa a staggering $3 million.

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