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Mr Chideme

Innocent Ruwende Senior Reporter
Harare City Council is now owed more than $725 million by Government, business and residents, as policy inconsistencies regarding debt collection continue to cost the cash-strapped local authority.

As at December 31 last year, properties in high-density suburbs owed the city $171,6 million, while low-density suburbs carried a $189,6 million debt. Industrial or commercial properties were indebted to the tune of $322 million.

Also, Government owes the city $29,4 million, while Chitungwiza, Norton, Ruwa and Epworth owe $10,2 million, $3,1 million, $96 647 and $12,9 million, respectively. City of Harare’s corporate communications manager Mr Michael Chideme said the city was only collecting $12 million from potential monthly collections of $22 million.

“(Through) using Wellcash Debt Collectors, it had gone up to about $15 million, but it has now gone down to $12 million. From December 5 to January 15, they brought in $4,5 million. Their contract was, however, not renewed,” he said.

“Naturally, the debt collector acted as an enforcer in terms of enticing debtors to be paid up. Customers naturally do not want a debt collector to visit because of the effect that action has on one’s social standing in the community.”

Mr Chideme said that while cash inflows improved following the engagement of Wellcash, council had to accommodate the views of the residents who felt they were hard-pressed for cash, hence, the non-renewal of the debt collectors’ contract.

He urged customers to pay their bills.

“If people honour their obligations, there is no need to engage a debt collector or enforcer,” he said. MDC-T councillors were largely accused of politicking at the expense of service delivery by pulling the plug on Wellcash Debt Collectors.

The councillors, who are controlled from Harvest House, were torn between the need to boost the city’s revenue and toeing the party line. MDC-T ordered the councillors to cancel the contract in fear of disappointing Harare residents ahead of the harmonised elections this year. At a full council meeting last year, Ward 14 councillor Alderman Samuel Chinyowa accused the MDC-T councillors of playing cheap politics.

“If other Government ministries are engaging Wellcash to recover their debts, who are you to deny Wellcash? We should prioritise service delivery. How are we going to pay our workers if we cancel Wellcash’s contract?” he said.