Cash-strapped Kwekwe City Council plans to lobby the government to get powers to garnishee bank accounts of its debtors to ease its financial woes.
BY BLESSED MHLANGA
According to council minutes of the finance committee held last month, town clerk, Emmanuel Musara said local authorities should be allowed to garnishee accounts.
“The town clerk felt that these are issues which Urban Councils Association of Zimbabwe (UCAZ) should be lobbying with the ministry, so that local authorities, as taxing authorities, could also be given garnishing powers to improve on revenue collection and be able to service their debts,” the minutes read.
Musara’s statements came after finance director, Rejoice Maweni, told the meeting that the National Social Security Authority (NSSA) wanted to review Kwekwe’s payment plan from $14 000 a month to $22 000.
Maweni warned council that if it failed to pay the $22 000 monthly, NSSA could easily garnishee their account and this would push Kwekwe to the brink of social service delivery collapse.
Kwekwe, which owes Zesa close to $13 million in electricity debts, is paying $33 000 in instalments towards clearing the debt on the back of a High Court order.
Other debts weighing heavily on the council include a $7 million salaries and wage debt, $120 000 in outstanding Zimra taxes and a phone bill of $127 000, which also stands unpaid.
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Council has gone for months without working phones owing to a long standing debt to TelOne.
Kwekwe is owed $1,1 million by Zimasco, which was recently placed under voluntary judiciary management, with the debt expected to be paid over six years.
Defunct Ziscosteel owe the mayor Matenda Madzoke-led council close to $16 million, while Redcliff owes $1,7 million.
Musara, at one time, called on the government to introduce the Chinese Yuan, which he said would increase liquidity and subsequently the ability of debtors to settle their debts with council.
