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Locadia Mavhudzi Midlands Correspondent
Gweru City Council is contemplating taking legal action against defaulting ratepayers in a bid to recover over $64 million it is owed.

Speaking at the first quarter budget review meeting held at the Mayor’s Parlour, GCC acting director of finance Mr Owen Masimba said as at March 31, debtors owed council a total of $64 269 709, with most ratepayers failing to honour their obligations.

He said the local authority would soon take legal action against defaulters and urged residents to approach council with payment plans to clear their debts.

“Although as council we are reluctant to take that route, very soon demand letters, summons and writs of execution will be sent to defaulters,” he said.

Mr Masimba said the local authority was failing to deliver critical services in the first quarter of the year owing to low revenue collections.

He said income from critical services such as water, social services and roads have been very minimal in the first quarter.

“Council collected RTGS$1 million from water charges against a budget of RTGS$4,2 million in the whole quarter, RTGS$30 000 from the heath sector against a projected budget of RTGS$234 000 and for roads we have not yet received anything from  Zimbabwe National Road Administration (Zinara),” he said.

“You will realise that we now have a floating exchange rate regime, that same rate has taken a knock on RTGS$. The volatility of the exchange rate means council will be forking out three times more than budgeted. The effect is that council budget is now underfunded by 200 percent.

“However, in line with the Transitional Stabilisation Programme, council will respond by coming up with a supplementary budget in May/June2019 to cushion its operations from the inflationary and exchange rate pressures currently obtaining.”

Mr Masimba said residents should expect mid-year adjustment to the council budget in this regard.

“Through the supplementary budget, residents should brace for adjustment of council bills and we will continue reading from the macro economic trends so that we remain supportive of the national effort,” he said.

Council will also implement a rigorous debt collection regime to pool resources to address water challenges.