A POTENTIALLY bitter standoff looms between Redcliff Municipality and Ziscosteel after the latter reportedly disputed its $2, 6 million utility bill.
BY STAFF REPORTER
According to latest council minutes, Ziscosteel owes council $2,573 million in unpaid rentals, licenses and taxes, a figure which the dormant iron and steelmaker claims was exaggerated.
Finance committee chairperson Clayton Masiyatsva confirmed that council had now engaged Ziscosteel with the view of settling the dispute.
“We have since engaged the company and we are in talks to clarify what they (Ziscosteel) are disputing from our bill. They have not told us their figure and as a result we cannot give further details into the matter,” Masiyatsva said.
Ziscosteel has been dormant for the past decade due to undercapitalisation while the much-touted $750 million takeover bid by Indian-based Essar Holdings hangs in the balance.
Ziscosteel also owes Kwekwe City Council over $10 million in unpaid water bills, a debt which has also reportedly compromised service delivery in the Midlands’ second largest city.
Redcliff is owed $7,06 million by its residents and corporate bodies as of last November and is struggling to pay its workers and failing to carry out basic maintenance work resulting in huge losses due to burst water pipes.
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According to the February 3, 2014 report, council lost 345 722 million kilolitres of treated water to leakages.
“We are losing money, especially with the water account which is taking most of the money out of council and, therefore, repairs and replacements become critical,” he said.
The council is currently negotiating a $21 million load deal with the African Development Bank. The bank has, however, ordered the local authority to employ a substantive water engineer before it could release the funds.
