Firms owe Zvishavane Town Council $40m

From Munyaradzi Doma in Zvishavane
Zvishavane Town Council is reportedly owed a staggering $40 million in rates and tariffs by various companies in the mining town, with council announcing a raft of measures to recover the debt.

Presenting the mining town’s 2018 draft budget, finance committee chairperson Councillor Fatuma Phiri revealed that her council was owed about $14 million by the closed Shabanie asbestos mine as at August 31 this year.

Council was also owed a further $13 million by the Zimbabwe Electricity Transmission and Distribution Company, she said.

Other big debtors include platinum miner Mimosa, Sabi Gold Mine and Government departments.

Residents in Zvishavane owed council $8 million in unpaid rates, said Cllr Phiri.

She said the council was pinning its hopes on the anticipated resumption of operations at Shabanie Mine for the asbestos miner to reduce its arrears.

“We have since taken some of our big debtors to court and we hope the matter will be finalised very soon,” said Cllr Phiri. “Shabanie Mine is still not operating and we hope that soon operations will be revived at the company.

“On a positive note, we are happy that Sabi Gold Mine has reopened and they have started paying bills to council.’’

Cllr Phiri said council would intensify efforts to recover debts to improve its service delivery capacity.

“Council continues to engage debtors through reminders, water disconnections and constant follow-up through its debt collection unit,’’ she said.

Zvishavane Town council recently passed a $7,1 million 2018 budget that will see rates and tariffs in the mining town remaining at current levels.

The budget will be passed after approval by Government.

“Some debtors have come on board and completed debt settlement agreement forms,” said Cllr Phiri.

Cllr Phiri said council had seen it prudent to improve the quality of services to make residents pay.

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