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Byo raises red flag over ballooning debt

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BULAWAYO city fathers have expressed concern over the ballooning ratepayers’ debt after the local authority bowed to pressure and suspended all lawsuits against indebted residents.

BULAWAYO city fathers have expressed concern over the ballooning ratepayers’ debt after the local authority bowed to pressure and suspended all lawsuits against indebted residents.

By NQOBANI NDLOVU

The Bulawayo City Council had engaged debt collectors, who threatened to attach and auction properties belonging to owing residents, sparking an outcry from ratepayers and residents’ associations.

All litigation processes were suspended in July this year, but the latest finance and development committee report has shown that the debt has ballooned.

In October, the council opening balance was $166,3 million, but it shot up to $168,1 million by the end of the month.

“Council’s decision to suspend litigation was with immediate effect, meaning all processes were recalled and what we discovered is that we made serious losses as a result of the recall of the processes.

“This process should have been finalised to avoid such a situation which has put council in a worse off position than it was before,” the council report read.

“The economy is bad admittedly, but it is bad to both council and the residents. We must all agree that council receives no grants from anywhere and we should, therefore, remain relevant. This decision is tantamount to shooting ourselves in the foot.”

Bulawayo mayor Martin Moyo yesterday expressed regret over the ballooning debt, but warned that the local authority will use all means possible to recover the money.

“The fees must be collected. If we say we cannot use debt collectors, council has no option, but to find alternative ways for collecting the unpaid monies. We will try to protect citizens, but when they are doing that we are also jeopardising service delivery and welfare of the city.

“There are some who are delinquent and not paying, but action has to be taken, equally effective methods will be engaged by council,” Moyo said.

Bulawayo, like other councils across the country, was left in the red following a government directive forcing councils to cancel outstanding bills ahead of the 2013 general elections.

Councils have argued that they have struggled to get back on their feet and offer efficient service delivery following the directive that was dismissed by the opposition as cheap populism.