MARTIN MAWAYA
The Gweru City is owed a staggering ZwG161.8 million as of July 31, 2024, according to a report presented by the council’s finance deputy director, Owen Masimba.
The report, which was presented during a mid-year budget performance review meeting, details the significant amount of unpaid rates and other fees owed to the local authority.
“The council is owed a substantial amount of money, which is hindering our ability to effectively deliver services to the community,” Masimba said.
“We are working to improve our revenue collection strategies and engage with debtors to find amicable solutions.”
Masimba highlighted that the majority of the outstanding debt is primarily owed by low-density areas, the town area, and businesses, which account for ZwG110.8 million, reflecting 43% of the total debt.
The high-density suburbs owe the local authority ZwG50.9 million, or 32% of the debt, he said.
To address this issue, the Midlands capital has vowed to intensify debt collection mechanisms, particularly for accounts overdue by 120 days or more and explore alternative revenue streams to alleviate the financial strain.
Additionally, council aims to strengthen community engagement and communication, as well as implement incentive programs, such as discounts for early or full payments, to encourage faster repayment and reduce arrears, said Masimba.
In terms of trade payables and creditors, the city has a total of ZwG51.3 million in outstanding payables, with the largest liability being the ZwG30.3 million owed to the Zimbabwe Electricity Supply Authority (ZESA).
However, council has sought payment plans with large creditors, particularly ZESA, to avoid service disruptions.
Furthermore, the local authority plans to conduct a comprehensive review of expenditure and implement a tighter cash flow monitoring system to prioritize payments to key creditors.
As of July 2024, council’s income was ZwG127.6 million, which is 37% of the total budgeted income for 2024, with actual expenditure standing at ZwG106.7 million, representing 31% of the total expenditure budget.
Despite maintaining a balanced expenditure relative to income, Masimba highlighted the need to accelerate capital projects, particularly in critical areas like water infrastructure and road maintenance.
The local authority emphasized the importance of engaging with residents and encouraging them to settle their bills in order to improve service delivery and infrastructure upgrading.
