Harare set to write off US$60 million debt owed by residents

The HARARE City Council treasure, Misheck Mubvumbi has told the Herald that the capital is set to write off a US$60 million debt owed by residents who cannot pay because of unemployment and an under-performing economy. Harare is owed US$260 million by its customers who include residents, industry and commerce.

The council has since engaged the Messenger of Court to attach and sell property of some who are failing to pay their debts.

Some property belonging to residents has already been auctioned.

The huge debt has seriously complicated the city's service delivery mandate with Mr Mubvumbi admitting that "we do not have resources to fund service delivery".

Mr Mubvumbi told a recent special council meeting that council would not be able to recover up to US$60 million from its debtors.

"We are owed US$260 million. Not all that amount is collectable," he said.

"Some of it is bad debt because of the low utilisation of industry."

Mr Mubvumbi was responding to inquiries by Clr Peter Marange on whether the city had funds to sponsor its service delivery mandate.

He said in the last six months, revenue collections had significantly improved from US$12 million per month.

Mr Mubvumbi said they were now collecting about US$16 million.

Council treasury sources said the new figures were attributed to an increase in licensing fees and a huge payment that was received from Government.

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