Bulawayo City Council is reportedly saddled with a $71 million debt which includes unpaid salaries and money owed to several service providers since November last year.
Own Correspondent
According to the latest council minutes, the local authority is indebted to creditors that include the Zimbabwe Revenue Authority (Zimra), National Social Security Authority, Local Authorities Pension Fund, Zimbabwe Urban Councils Workers’ Union, Zimbabwe Manpower Development Fund, Ministry of Industry and Commerce, various insurance companies, Zimbabwe Electricity Supply Authority, Tel-One, Trade Creditors, Mzingwane Catchment (water levies) and a number of financial institutions.
However, according to the same minutes, the council is also owed more than $5 million by parastatals as of October last year.
Last September, Finance ministry secretary Willard Manungo wrote to Bulawayo town clerk Middleton Nyoni saying a strategy was being put in place to match the government debt to the parastatals’ debt to Zimra.
“The objective at this stage is to ensure that institutions that are owed by government are immediately relieved of Zimra garnishees and that tax clearance certificates are obtained for enhanced business activities,” said Manungo.
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“Government is also aware that such debts have been used as scapegoats for parastatals and local authorities’ failure to meet their tax obligations.”