Business proposes freeze on outstanding bills

THE Zimbabwe National Chamber of Commerce (ZNCC) has called on TelOne to freeze all outstanding bills backdating to 2009, adding the 3% interest rate charged on them was choking businesses.

BY MTHANDAZO NYONI

Speaking at the ZNCC-TelOne business dialogue in Bulawayo on Friday, ZNCC Bulawayo branch chairman, Golden Muoni said TelOne was charging interest on outstanding bills, which had a negative impact on corporates.

“This move by TelOne is impacting negatively on the efforts to restore operations and productivity on industry and commerce,” he said.

“The method of erasing debts is unattainable by the stakeholders and moreover, it becomes very difficult for companies to erase the debts, as these interests are charged on month on month basis at a rate of 3%.”

ZNCC said interest rates end up choking business, proposing a freeze on all outstanding dues and payments plans to be put in place for all bills pre-December 2017.

“An option of writing off an interest of 50% of the bills of anyone who settles 50% in a single payment or within 45 days and has maintained a landline for a period of not less than five to 10 years. Pre-payment of TelOne telephone bills should be considered as an option to those who choose not to do so,” he said.

Muoni said TelOne should also consider voice over internet protocol for all existing landlines.

He said current liabilities were inflated on balance sheets by the cumulative debts, thereby, disadvantaging companies seeking investment.

In response, TelOne executive director-retail, Joseph Machiva ruled out a blanket freeze on outstanding bills, as well as writing off 50%, insisting on payment plans.

“To say a blanket freeze, then we will shut down within three months because you are all in business, you know what’s happening in this country. If you are running a business as forex intensive, you have to have a liquidity to be able to find the forex,” he said.

“First things first, I cannot write off 50%, I’m sorry to say. Maximum we have written off is 30% actually . . . we can’t do it easily and 50% I’m under strict instruction to say no, 50% we can’t do, but 30% certainly we can.”

On the 3% interest rate, Machiva said they tried various ways like promotions to encourage businesses to settle their bills with no luck.

“Last year, we had an offer where we cut bills by 30% if they came and paid. [This is] an effort to try and get the money into the bank account, where we can pay Econet, NetOne, Telecel . . . but we have not seen responses enough for us to avoid effecting a 3% charge on debts.”

He, however, said the 3% was negotiable and called businesses to engage them further for recourse.

8 Comments

  1. Just write off all zesa, city council and tel one bills to companies and individuals under operation restore wealth and sanity right up to 30 november 2017!! Come Ed and co-its called politics -ask Bob the real politician!!

    1. All interest on rates since 2009 should be removed and should not be charged because companies and everyone is struggling to make ends meet

  2. freezes all debts including council ,zesa etc bills

  3. BROKESAI HENYU TEL ONE YO

    vanhu vacho vanga vasikufona here saka iyo tel tel yacho haisikuda mariyo here,me dont understand kt vakafona voda bill write off saka kuda kufona maharazve

  4. This business of cancelling debts is a very dangerous habit we all know where it will lead us who will pay knowing that at some point debts will be cancelled. lets pay up!! no free lunch.

  5. Seriously, this ZNCC BYO branch chairman is absolutely clueless in business. Enterprises and individuals made money or realized some return off the telephone calls or internet connections they did at

  6. No wonder why the country is still going to the dogs!!

  7. what rate did telone use when migrating to the dollar during the dollarisation that’s the big question

Leave a Reply

Your email address will not be published.