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Kwekwe council mulls legal action over outstanding bills

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KWEKWE City Council is mulling taking legal action against ratepayers with outstanding bills amid reports that the local authority was owed $21,5 million by residents and corporate organisations.

KWEKWE City Council is mulling taking legal action against ratepayers with outstanding bills amid reports that the local authority was owed $21,5 million by residents and corporate organisations. STAFF REPORTER

Council’s acting director of finance Morris Mutema told a recent full council meeting his department was exploring several ways to recover the debts, among them engaging debt collectors and taking the debtors to court.

The huge debt has reportedly compromised service delivery and led to late payment of workers’ salaries.

“We use several methods to force ratepayers to pay their bills. However, our efforts are being hindered by the directive from government officials not to disconnect water supply to some companies,” he said.

“There is need to take up this issue with the courts. We asked for alternative ways for effective debt collection, but nothing has been proffered to us.”

The councillors resolved to take drastic action against those who owe council large amounts. They were in agreement that such a situation if allowed to continue would compromise service delivery.

“We must find ways for effective debt collection without using selective application,” Councillor Queenley Chitopo said. Councillor Weston Masiya said council should have a payment plan in place for individual debtors.

“No matter how little the amount may be, let us just accept it rather than turn away ratepayers who are also finding it difficult to make ends meet in these hard times,” Masiya said.

New Zim Steel, formerly Ziscosteel, owes the council $9,2 million in unpaid rates while Lancashire Steel, a subsidiary of New Zim Steel, owes $185 132, Golden Mile Hotel ($27 782), Hotel Tropicana (29 283) and Tor Steel ($115 945).