THE Bulawayo City Council (BCC) says its debt recovery rate has risen to about 70% since it took the decision to take debtors to court.
Report by Khanyile Mlotshwa
The council recently handed over several ratepayers with unpaid rates below $2 000 to the magistrates’ courts for prosecution while those with higher debts were handed over to council lawyers. According to the latest council minutes, the debt recovery rate had remained stuck at 39% before the decision was made.
“The average collection rate was 39% which was bound to increase when further processes were done,” the report reads in part.
“Out of an amount of $4 599 471 handed over from financial services department, $3 217 246 has since been paid, giving a collection rate of 70%.”
“The balance represents amounts which were difficult to collect, for example, accounts which did not have any attachable property, water final accounts, undeveloped stands, vacant properties, defendants unknown, and accounts under judicial management or liquidation,” the report said.
According to the report, the magistrate’s jurisdiction on the debts was $2 000 and, “accounts which were above this figure were handed over to the lawyers to process as appropriate”.
“The lower collection rates for James Moyo-Majwabu and Majoko and Majoko were due to additional handovers made late this year which were still to be processed.
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Their ideal rate would have been 74% and 87% respectively.” According to the latest report, ratepayers owed the local authority a combined $83 569 238.
Residents owed the largest amount of $56 372 964, industrial and commercial debtors owed $21 805 143 and government departments owed $5 391 130.
