Bulawayo debt surges 3% to $134 million

Bulawayo City Council's (BCC) debt increased by 3% to $134 million as at September 30, as the local authority struggles to service its obligations owing to a decline in revenue collection due to the declining economy, latest council minutes show.

The debt is about 87% of its $154 million 2016 budget.

The City of Kings is owed $139 million by service debtors, mainly government, domestic, industrial and commercial entities.

According to the minutes, as at September 30, 2016, the creditors balance stood at $134 million from $131 million in the prior month, as council continues to acquire goods and services on credit, while there was a backlog in payments for services received.

Council owes statutory bodies such as the National Social Security Authority, Municipal Provident Fund and the Zimbabwe Manpower Development Fund about $46 million, TelOne, Zimbabwe National Water Authority and Zesa Holdings about $74 million.