Ballooning debts cripple councils

WITH the Covid-19 pandemic having a devastating impact on most Zimbabweans’ livelihoods, the country’s major local authorities are owed ZW$4 billion (US$48,1 million) by ratepayers.

A survey at five major local authorities shows that there is a rate default crisis threatening to cripple cash-strapped councils, which are already failing to provide essential services, like safe drinking water, refuse collection and health delivery.

Harare City Council is the most affected, as it is owed ZW$2 billion (US$24 million), followed by Bulawayo at ZW$800 million (US$9,6 million).

Mutare’s residents are failing to clear ZW$400 million (US$4,8 million), while Gweru is owed ZW$300 million (US$3,6 million). Masvingo residents are in arrears of ZW$60 million (US$722 891).

There are 92 local authorities — 32 urban and 60 rural district councils — owed billions of Zimdollars by residents, business and government.

The Urban Councils Association of Zimbabwe (Ucaz) president Josiah Makombe said service delivery has been hard hit.

“Most local authorities are owed a lot of money by residents, business community and government. It has affected service delivery, as you know that local authorities have no other means of raising revenue apart from rates,” Makombe said.

He said water supply and refuse collection were some of the services impacted by low revenues.

“Buying fuel is difficult because we collect Zimbabwe dollars but fuel traders are charging United States dollars. Our revenue is not enough to buy US dollars at the foreign currency auction,” Makombe said.

“It has also affected the supply of water because we are supposed to buy water purification chemicals and spares in foreign currency.”

Some of the councils have responded to revenue collection challenges by raising tariffs dramatically — increases of between 300% and 500% — in recently approved budgets.

Residents are vehemently the proposed new rates.

The business community has also raised concern over steep increases.

They are arguing that the poor service delivery was not commensurate to the high charges.

Residents associations said tariff reviews were unjustified as ratepayers, most of whom are informal traders, were badly affected by the Covid-19 lockdown.

They made a passionate plea for patience to give ratepayers, most who are in the informal sector, time to recover from the knock-off effects of the pandemic.

United Mutare Residents and Ratepayers Association project coordinator Edson Dube said: “Local authorities are shooting themselves in the foot. Salaries have been stagnant for many months and residents cannot afford another rate increase.”

“So everything is against the rates increases likely to cause more defaults,” Dube added.

“We have to understand that the informal sector, which constitutes the largest employment base, has not been working while most non-essential businesses have also been closed due to Covid-19.

Last year, they only operated for five month.

Makombe said Covid-19 lockdowns the ratepayer’s pocket.

Makombe said: “This has affected local authorities negatively. We have seen a drop in revenue collection due to Covid-19 lockdown,”

He urged ratepayers to honour their debts if they want good service delivery.

“We plead with the business community and government departments to pay up to enable us give improved services,” Makombe said. protesting hit