Kwekwe faces shut down

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KWEKWE City Council, which is saddled with a $12 million debt, faces a total service delivery shutdown as heavy industries based in the city continue to default on rate payments, an official said on Monday.

Source

Municipalities across the country have experienced serious cash problems following a government decree last year to cancel debts owed by households, a move critics said was a costly election gimmick by President Robert Mugabe’s Zanu PF.

In line with the government edict, Kwekwe cancelled over $14 million in household municipal debt.

The council is owed $18,4 million mainly by Ziscosteel, now NewZim Steel, ($12 million), ferrochrome producer ZIMASCO
($161 327), Lancashire Steel ($217 619) and Tor Steel ($151 512), among others.

In turn, the council’s debts stood at $12 601 112 as at December 31 last year, according to documents released by the council finance committee.

The municipality also has a power bill of $7 million, accumulated from 2009.

Other creditors are workers who are owed $3 418 536 in salary arrears and ZIMRA, which is owed $254 833 in unremitted income tax.

Kwekwe also owes the Zimbabwe National Water Authority (ZINWA) $854 297. The authority early this month shut Kwekwe’s taps for two days, forcing several major companies to close shop.

Mayor Matenda Madzoke said his council could soon fail to offer basic services delivery, especially if there was no resolution to the NewZim Steel debt.

11 COMMENTS

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  1. Sebakwe Dam was built by ziscsteel(90% of steel requirements),the water pipeline from kk to zisco aswell,saka chenyu mayor hapana,the bill yu are talking is madness

  2. To say municipalities across the country have experienced serious cash problems following a Government decree last year to cancel debts owed by households is not true at all. These municipalities are looting ratepayer’ s funds in broad daylight. They award themselves hefty salaries and allowances without any service delivery. They do not need any money from ratepayers, they actually take advantage of the residents and abuse their money. Its not fair and something should be done urgently or we will not pay rates anymore.

  3. Pple apana mota inoita maMilions.e councils are failining simply bcoz pple n companies dnt hv money.the Gvnmnt hs nothing 2 give,since 80% of its revenue is goin 2 salaries.n Gvmnt will nt increase its cashflow simply bcoz ,companies r closing,so reduced tax 4rm companies and retreched pple.Gvmnts only cashcow is maBoarders Duty,it can’t afford 2 ban imports

  4. Mazowe municipal is goin under e same situ.tel me ndiani anoty andina chikwerety kukanzuru.MaSalaries avo atori ashoma compared 2 thoz of neighbourin countries.Cars dzinoita $4000 paMesina or $30000 brand new Vigo,dzopedza $12 Milllion.mu$12 Mill mune ma$30000 mangani.zvimwe ndezvimwe councils aisi kuwana mari.+ 70%of its revenue mst go 2 sevice thn 30% 2 salaries.Sevice yacho mukuiwana here.Pple thnk n Reason.Gvmnt is straignin cocils n its self.almost evry job is informal , so no tax 4 Gvmnt.yobvepi Mari nhai.

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