News / Local
Bulawayo firms get debt extension relief
05 Mar 2015 at 05:00hrs | Views
Struggling industries in Bulawayo have received a life line from the local authority as it has extended its 50 percent rebate offer to June.
The offer is open to industry and commerce.
Financial Director Kempton Ndimande told council that on 6 November 2013 an array of incentives to the business community the most popular being the 50% discount meant to offer the business community some relief in appreciation of their continued support of Bulawayo had been approved.
The offer had been available between January and June 2014 before it was extended in phases, to December of the same year.
However, due to its popularity, council has been inundated with requests for an extension.
"Others were alleging that they had several accounts and wished to take advantage of the offer, hence the request for the extension. They further indicated that their businesses were under performing due to the current economic meltdown and the incentive offer would cushion them financially."
"The majority were citing the current business environment and inability to clear the indebtedness in the given time hence the request to be allowed additional time."
"Some consumers alleged that they had not been aware of the incentives and only learnt of it in December 2014 whilst others claimed they had several accounts and implored Council to extend this noble gesture," Ndimande told the Finance and Development committee.
Ndimande said the discounts granted between January and June 2014 amounted to $1.2 million, while July to September and October to December discounts were $389,970 and $659,600 respectively.
"The total amount granted as discount in year 2014 amounted to $2,249,570. The discounts had been given upon payment of 50% of arrears up to December 2013 plus current charges to date," he added.
The offer is open to industry and commerce.
Financial Director Kempton Ndimande told council that on 6 November 2013 an array of incentives to the business community the most popular being the 50% discount meant to offer the business community some relief in appreciation of their continued support of Bulawayo had been approved.
The offer had been available between January and June 2014 before it was extended in phases, to December of the same year.
However, due to its popularity, council has been inundated with requests for an extension.
"Others were alleging that they had several accounts and wished to take advantage of the offer, hence the request for the extension. They further indicated that their businesses were under performing due to the current economic meltdown and the incentive offer would cushion them financially."
"The majority were citing the current business environment and inability to clear the indebtedness in the given time hence the request to be allowed additional time."
"Some consumers alleged that they had not been aware of the incentives and only learnt of it in December 2014 whilst others claimed they had several accounts and implored Council to extend this noble gesture," Ndimande told the Finance and Development committee.
Ndimande said the discounts granted between January and June 2014 amounted to $1.2 million, while July to September and October to December discounts were $389,970 and $659,600 respectively.
"The total amount granted as discount in year 2014 amounted to $2,249,570. The discounts had been given upon payment of 50% of arrears up to December 2013 plus current charges to date," he added.
Source - Byo24News
