The Bulawayo City Council (BCC) has taken a drastic stance on debt recovery, cutting off water supplies to 59 schools in a bid to recoup outstanding payments.
The council’s move comes amid a growing financial crisis,
as the local authority grapples with significant amounts owed by different
institutions and residents.
The local authority’s determined approach, as highlighted
in the latest council report, underscores its commitment to recovering
outstanding debts and maintaining the sustainability of essential services.
“The debtors’ figure as at the end of September 2024 was
ZiG712, 6 million. At the end of August 2024, the debt stood at ZiG560,7
million indicating an increase of ZiG151,9 million or a 21 percent increase in
the debt. The increase in the debt was attributed to resource constraints in
the debt management section.
“A total of 18 815 various debt recovery actions were
carried out with a targeted amount of US$ 17,5 million. Payments amounting to
US$4 million (23 percent) were received directly as a result of the debt
collection efforts,” reads the report.
According to the report, 59 schools had their water
disconnected to recover US$607 419. Bulawayo has 146 primary schools and 57
secondary schools, meaning that the 59 schools represent 29 percent of the
schools in the city had their water cut off.
The only other place that experienced water disconnections
Nkulumane where 461 houses were affected, in a bid to recover US$134 891 of
which just US$2 848 (2,11 percent) was
realised.
The local authority has also begun the process of engaging
873 companies in the city, through
sending of emails and making phone calls, in a bid to recover, US$4,8
million which they owed. The engagement has seen the council recovering US$3,3
million, which represents a collection efficiency of 69,4 percent. There are
also 1 644 companies in the city that have been given 24-hour notices, to
recover a debt of US$2,3 million, with the local authority managing to recover
just US$128 351, which represents a collection efficiency of 5,42 percent.
Suburbs that have properties that the local authority has handed over for debt
collection include; Bellevue (137 properties), Famona/Bradfield (892) and
Kumalo/Killarney (205).
Those that have final demands are; Famona (1 720), Richmond
(148), Kumalo-rates only (901), Parklands/Suburbs (187), Nketa (2 398),
Emganwini (2 194), Pumula (4 989), Magwegwe (191) and Cowdray Park has 30
properties under final demands with 24-hour notices issued to properties in
Pelandaba (20), Tshabalala (41) and Nketa (65).
A total of 304 properties in Mzilikazi have got call-ins,
14 in Pumula and 150 in Tshabalala.
In terms of phone calls made, as a debt recovery measure,
the local authority has engaged 50 properties in Mzilikazi, Emakhandeni (150),
Luveve (271), Pelandaba (153), Mpopoma (160), Lobengula (25), Pumula (90),
Tshabalala (200) and 93 properties in Nkulumane.
In terms of the total debt owed to the local authority,
domestic users owe the largest chunk pegged at US$19,4 million (68 percent),
industrial and commercial debtors owe US$7,3 million (26 percent) and the
Government US$1,8 million (seven percent). Sunday News
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