GWERU City Council is owed more than US$161 million by ratepayers as of July 2024, a situation that is affecting effective service delivery, a senior council official has said.
Presenting the mid-year 2024 budget review on Monday this week, council assistant finance director Owen Masimba said a significant portion of the debt was overdue by more than four months.
He said the outstanding debts amount to ZiG161,8 million, with a significant portion, that is US$52,06 million, overdue by more than 120 days.
“This highlights a concerning delay in collections particularly in areas such as the town and western areas which together account for over ZiG$86 million in debt.
“In the town area residents and businesses owe ZiG$110,8 million of which ZiG$35,3 million is overdue by 120 plus days. In Mkoba, ZiG$9,5 million is overdue contributing to a total of ZiG$29,3 million in outstanding debt,” he said.
Masimba said council owed US$51,3 million to its creditors with Zesa topping the list.
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“Council owes Zesa ZiG$30,3 million and other significant debts include payroll related payables, particularly statutory obligations to entities such as as Zimra [Zimbabwe Revenue Authority] and Nssa [National Social Security Authority] among others which total over ZiG$19 million,” he said.
Masimba said as of July this year, the local authority had collected US$127,6 million which is 37% of the total budgeted income for 2024.
He said council expenditure stood at US$106,7 million representing 31% of the expenditure budget.