Zimpapers Logo

Locadia Mavhudzi Midlands Correspondent
Gweru City Council and Zesa have agreed on a payment plan for the settlement of the $28 million that the former owes the latter.

Acting finance director Mr Owen Masimba said the local authority had finally made some progress towards settling its mammoth debt.

“We have engaged ZESA and come up with a payment plan so that we can start servicing our $28 million debt.

‘‘This is the electricity cost we incur for pumping water at Gwenhoro Dam. We receive an electricity bill of an average of $320 000 every month for Gwenhoro pump station alone.”

Mr Masimba said the revenue collected on monthly basis for water charges was not enough  to enable council to pay its debtors adding that the financial performance of the local authority in the first quarter had been poor.

“In the first quarter of 2019, our debtors fell from just over $65 million to just above $64 million shedding a total of $1 064 140 while our creditors marginally increased from $57 million to $58 million. We also have a $500 000 overdraft with a local bank.”

Mr Masimba said Gweru City Council oweds substantial amounts to the Zimbabwe Revenue Authority (ZIMRA) and the Local Authorities Pension Fund (LAPF).

“While our biggest creditor is ZETDC which constitutes 49,22 percent of the total creditors we also have major creditors such as LAPF where we are owing $14 million , ZIMRA $5 million, Government loans $4 million while leave pay provision is now at $3,5 million. However, we have made liquidation payment plans and in some cases set-off arrangements have been agreed.”

Meanwhile, council says it will be sending demand letters and summons to all its debtors in an effort to recover its debt from residents and the business community whose arrears now total $64 million.