Govt debt bleeds Kwekwe

By The Standard | May. 25, 2021 | 1 Min read

KWEKWE City Council says it is failing to effectively discharge its duties because of outstanding rates estimated at more than $600 million.

BY STEPHEN CHADENGA

KWEKWE City Council says it is failing to effectively discharge its duties because of outstanding rates estimated at more than $600 million.

Mayor Angelina Kasipo yesterday said government, commerce and industry at $405 181 744 were the biggest debtors while residents accounted for the balance of $258 251 115.

She told Southern Eye that the local authority had started employing various debt collection measures, including legal action, to induce payment and enable the local authority to fulfil its statutory obligations.

“As at April 30, council was owed a total of $663 432 859. Of this total, residential debtors are $258 251 115 while commerce, industry and government owe $405 181 744,” she said.

“We have taken steps such as stakeholder engagement to recover the debt. We will also be handing debtors to lawyers as well as embarking on water disconnections.”

Kasipo said council owed its creditors a total of $196 552 842 as at April 30, 2021.

Last week, the cash-strapped local authority said it was failing to service its $111 million electricity debt, leading to a standoff with the power utility.

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In recent months, ratepayers across the country have reportedly been facing difficulties in honouring their debts due to economic hardships exacerbated by the COVID-19 pandemic lockdowns.

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