Write off all debts, Govt orders councils

yesterday. This followed complaints by residents’ associations over arrears caused by unjustified increases in rates and bills by MDC-T-led councils, especially in urban areas.
Minister Chombo told a Press conference yesterday that he had since dispatched circulars to the local authorities informing them of the policy line.

“In terms of Section 133 of the Rural District Councils Act Chapter 29:13 as read with Section 303 of the Urban Councils Act Chapter 29:15, councils are directed to write off debts in respect of rentals, unit tax, development levy, refuse charges and water and sewer fees as at 30 June, 2013.

“Similarly, amounts owed by residents in respect of rates since February 2009 stand prescribed in terms of Section 15 of the Prescription Act Chapter 8:11.”
Minister Chombo urged Zesa Holdings and the Zimbabwe National Water Authority to embrace the same policy to bring relief to the people.

He said the Government policy dovetailed with Zanu-PF’s pro-poor policies that sought to alleviate hardships induced by illegal economic sanctions.
Minister Chombo said while Government acknowledged that residents should pay their bills for the sustenance of effective and efficient service delivery, economic sanctions had made it difficult “for the generality of the citizenry to meet their obligations”.

He said residents were unable to pay their bills because of high unemployment and underemployment which diminished disposable incomes of the majority, making them unable to pay rent, unit tax, development levy and rates.

“Since our migration from the Zimbabwean dollar era to the multi-currency regime in February 2009 the residents have by and large failed to pay their dues to councils and have accumulated huge debts which have become clearly intractable,” said Minister Chombo.
“Definitely amounts owed have just become irrecoverable.”

Minister Chombo said in rural areas, farmers were tilling the land without adequate inputs against a background of droughts and unfavourable rainfall distribution.
He said delays in paying farmers for their grain had eroded their earnings.

Minister Chombo said commerce and industry performed badly in urban areas as capacity utilisation remained low, while local governments suffered as the Ministry of Finance headed by Mr Tendai Biti failed to give them support.

He said the MDC-T failed to manage urban councils as its councillors abused public office, were corrupt and disregarded proper management principles.
“In an eloquent demonstration of their insensitivity to the plight of the poor, some urban local authorities, embarked on an unfettered disempowerment agenda by repossessing stands and houses from citizens who had outstanding bills,” said Minister Chombo.
“Some were corruptly reallocated to serving councillors.”

Minister Chombo said his ministry was in the process of reversing the illegal repossessions.
Harare Residents Trust director Mr Precious Shumba welcomed the Government directive on cancellation of rates and service charges debts.

“While residents across Harare would welcome such a move to cancel all debt, it is important to acknowledge that the HRT mobilised residents to sign a petition on 19 October 2012 demanding the cancellation of all debt accrued from February 2009 to 31 December 2010, a period we strongly believe was most difficult, economically and socially for residents, and no tangible services were rendered in the cited period,” he said.

“The action taken by Minister Chombo is commendable.”
Mr Shumba said the directive should be in writing so that incoming councils do not reverse the order.

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