HomeNewsChiredzi RDC owed $3m, mulls legal action

Chiredzi RDC owed $3m, mulls legal action

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Chiredzi Rural District Council is owed $3 million in unpaid rates by ratepayers, a situation that has seen the local authority failing on service delivery, chief executive officer, Isaac Matsilele has revealed.

By Tatenda Chitagu

Speaking in an interview on the side lines of a circumcision graduation ceremony at Muhlanguleni business centre last week, Matsilele said the council was mulling legal action on defaulters to recover the money.

“We are facing financial challenges because of defaulters. We have a high default rate. In total, we are owed close to $3 million and this has left us incapacitated when it comes to service delivery.

“We are failing to repair roads. The situation has also been exacerbated by dwindling revenue streams because some of our major ratepayers no longer fall in our jurisdiction, like Tongaat Hulett, which is now paying its rentals to the Lands ministry,” he said.

Matsilele said the defaulters were not forthcoming in making payment plans and they will be left with no option, but to seek legal recourse.

“We urged the defaulters to make payment plans, but they are not forthcoming. We will be left with no option than to seek the services of debt collectors,” he said.

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