Gweru council recovers ZWG468m in debt crackdown

Date:

MARTIN MAWAYA

GWERU-The City of Gweru has recovered ZWG468.3 million from residents and businesses as it intensifies efforts to collect a ZWG1.3 billion debt owed to the local authority, with hundreds of major defaulters facing external collection, service cuts and possible business closures.

Council is pursuing a piecemeal approach to debt recovery after a recent exercise showed that collecting arrears remained a major challenge despite significant payments by debtors.

Council spokesperson Vimbai Chingwaramusee said 13,278 residential accounts with arrears exceeding ZWG10,000 had been profiled, with a combined debt of ZWG316.8 million.

A further 633 commercial accounts owing more than ZWG50,000 had accumulated debts totalling ZWG151.5 million.

The two categories account for ZWG468.3 million recovered to date, representing about 36% of the ZWG1.3 billion debtor book.

“Residential recoveries are ZWG316,774,108.16, while commercial recoveries are ZWG151,488,277.75, bringing the aggregate recovery to ZWG468,262,385.91,” Chingwaramusee said.

The recovery exercise was designed to separate arrears collection from current billing and assess the effectiveness of statutory 14-day notices issued to debtors.

About 200 accounts, mainly commercial debtors, have so far been served, while those facing financial difficulties being allowed to enter into payment plans, Chingwaramusee said.

However, council is now preparing to intensify enforcement against persistent defaulters.

“Strategies are cessation of services and shop closure, which are also under way,” Chingwaramusee said.

Under the next phase, commercial accounts with arrears exceeding ZWG50,000 and residential accounts owing more than ZWG10,000 will be handed over for external debt collection.

Council has published debt recovery information through its official communication channels and social media platforms to encourage residents and businesses to settle their bills.

The move comes as local authorities across Zimbabwe grapple with mounting arrears, which have undermined their ability to provide basic services and maintain infrastructure.

The local authority has re-engaged the Ministry of Finance and Economic Development over government related arrears, seeking intervention to address what it described as systemic debt and support municipal fiscal sustainability.

Council has set an immediate target of recovering at least ZWG500 million, building on the ZWG468.3 million collected during the blitz.

The debt recovery strategy forms part of broader efforts to improve revenue collection and strengthen council’s financial position amid rising operational costs and pressure to maintain water supplies, roads, waste management and other public services.

External collection agents, payment plans and enforcement measures will be complemented by public communication to ensure residents understand their obligations and the consequences of failing to settle arrears.

Council stressed that the programme would focus on progressively reducing the debt stock rather than relying on a single, blanket enforcement exercise.

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