City council risks losing vehicles over $16k debt
THE High Court has ordered Masvingo City Council to pay a housing consultant and developer more than $16 000 arising from a 2017 outstanding Value Added Tax debt.
Council received a writ of execution from the High Court to sell four of its vehicles and settle an outstanding VAT payment to the housing consultant and developer, Treasure Consultants Private Limited.
Town clerk Mr Adolf Gusha on Tuesday said the costs arose from services provided by Treasure Consultants to council during the development of stands in Runyararo West.
He said council did not pay for the services provided by the firm and the costs attracted interest, which accrued to more than $16 000. Although council argued that it had paid the cost of services amounting to $72 151 57 in full, the High Court judgment HC 88/ 16 directed the local authority to pay Treasure Consultants VAT at the prescribed rate of $10 822 and $3 835 for legal costs and charges.
Mr Gusha said council did not have the money, resulting in the issuance of a writ of execution to enforce payment.
“We were supposed to pay Treasure Consultancy VAT on services done on the Runyararo West housing project in 2017,” he said.
“The payment was supposed to be made by not later than January 25, 2018, failure which council vehicles would be auctioned.”
Acting chamber secretary Mr Vitalis Shonhayi said council had since proposed to pay a deposit of $5 000, while making arrangements to settle the entire debt owed to Treasure Consultants.
“We instructed our lawyers to negotiate a payment plan with Treasure Consultants to settle the debt, including $902 due to the Deputy Sheriff for serving the writ,” said Mr Shonhayi.
“The part payment was authorised pending ratification by council.”
According to recent full council meeting minutes, it was resolved that pending ratification by council, the city treasurer Mrs Thandiwe Dube would pay a deposit of $5 000 as part of VAT and other taxed costs due to Treasure Consultants Private Limited.
“This is in respect of High Court case number HC 88/ 16, it being noted that a total due was $16 662, inclusive of Deputy Sheriff costs,” read the minutes.
“Mr Shonhayi, be instructed to convene a special council meeting to deliberate on outstanding payments due to Treasure Consultants Private Limited and progress on site at the Runyararo West Housing project at, which legal representatives will be invited.”