News / Local
Zim government owes Byo City council more than US$5m
07 Jan 2012 at 09:09hrs | Views
Most Government departments are reportedly not paying their bills to the Bulawayo City Council amid revelations that the departments now owe council more than $5 million.
The city fathers said the development was negatively affecting the local authority's revenue inflows.
The council is owed about $60 million by both domestic and commercial water consumers.
In February last year the Government paid slightly above $3 million to the city council from the $8,3 million it owed as of December 2010.
According to the council's latest report, Government departments owe council thousands of dollars each.
The Ministry of Water Resources Development and Management has the largest debt of $2,3 million followed by the Ministry of Home Affairs, which owes over $860 000.
The city's financial director, Mr Kimpton Ndimande, has expressed concern over the ballooning Government debt.
"A sum of $4,9 million was owed by the Government at the beginning of September 2011 and only $33 371 has been paid to date."After September 2011 billing adjustments the debt rose to $5,1 million," said Mr Ndimande.
While the council is demanding payment from its debtors, it also owes its own service providers more than $37 million.
Bulawayo Mayor Councillor Thaba Moyo recently called for concerted efforts in improving revenue collection.
He warned that the council would get tough with residents, companies or government departments that failed to settle their bills.
The warning comes at a time when the local authority has started issuing summons to defaulters in a bid to recover money it is owed.
Last year city council workers downed tools several times demanding payment of salaries.
The city fathers said the development was negatively affecting the local authority's revenue inflows.
The council is owed about $60 million by both domestic and commercial water consumers.
In February last year the Government paid slightly above $3 million to the city council from the $8,3 million it owed as of December 2010.
According to the council's latest report, Government departments owe council thousands of dollars each.
The Ministry of Water Resources Development and Management has the largest debt of $2,3 million followed by the Ministry of Home Affairs, which owes over $860 000.
"A sum of $4,9 million was owed by the Government at the beginning of September 2011 and only $33 371 has been paid to date."After September 2011 billing adjustments the debt rose to $5,1 million," said Mr Ndimande.
While the council is demanding payment from its debtors, it also owes its own service providers more than $37 million.
Bulawayo Mayor Councillor Thaba Moyo recently called for concerted efforts in improving revenue collection.
He warned that the council would get tough with residents, companies or government departments that failed to settle their bills.
The warning comes at a time when the local authority has started issuing summons to defaulters in a bid to recover money it is owed.
Last year city council workers downed tools several times demanding payment of salaries.
Source - Byo
