THE BULAWAYO City Council (BCC) has expressed concern over the ballooning debt owed by ratepayers, despite the local authority implementing a credit and debt management plan with flexible payment terms.
Finance and development committee chairperson, councillor Mpumelelo Moyo, said the harsh economic situation was affecting residents’ ability to settle their debts with council.
“Council approved a credit and debt management policy in February 2020 with the purpose of ensuring that the city’s approach to debt recovery is sensitive, transparent and equitably applied and also to ensure that all revenues due to the city are collected timeously in a cost-efficient manner,” Moyo said.
“The credit policy is in a way helping in recovering debts owed, however, full enforcement of the provisions of the policy is being stalled by the current adverse economic conditions which are impacting negatively on the residents.”
Moyo said the outstanding debt was getting close to US$11 million, and rising.
“Council billed ZWL$68,2 billion in the month of October 2023, which is equivalent to US$10,5 million. Residents are coming forward to make payments towards their debt and the collection efficiency currently stands at 47% of the billing,” he said.
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Moyo said residents, industry, commerce and government owed the city ZWL$293 billion as at the end of October 2023 which is equivalent to US$45,1 million.
He said resource constraints were another factor which was affecting debts recovery.