News / Local
Beitbridge, Gwanda owe big chunk to Zinwa
15 Aug 2021 at 04:57hrs | Views
BEITBRIDGE and Gwanda, combined, have the highest debt of $407 million out of the total $507 million owed by all the country's 92 municipalities in the country to the Zimbabwe National Water Authority (Zinwa).
This has led the water authority to install bulk disconnections, in a bid to recover the debt. Addressing Parliament recently, the Minister of Lands, Agriculture, Fisheries, Water and Rural Resettlement Dr Anxious Masuka confirmed that the two owe 80 percent of the Zinwa debt for local authorities.
" . . . . from January 2020 to July 2021 clearly indicating that the two owe substantial amounts and have neglected to pay for their dues. Beitbridge made a single payment of $14,8 million in June 2020, the only payment it made between January and July 2021, leading to a cumulative debt of $198,3 million. For Gwanda, the debt accumulated from $16 million in January 2020 to $181 million in July 2021. The only major payment by Gwanda was a set off of a stand they gave to Zinwa valued at $12 million in October 2020. Otherwise, payments are approximately $2 million monthly and very inadequate for the services that they are provided," said Dr Masuka.
The payment rate to Zinwa for the two local authorities (Beitbridge and Gwanda) combined is 14 percent while Hwange is 80 percent, similarly Karoi is 75 percent. According to Dr Masuka, as of 30 July 2021, Zinwa was owed $2,4 billion by institutions that continue to receive portable water supply services from the parastatal albeit with many continuing to default on their payments.
This debt has massively impacted negatively on the operational effectiveness and efficiency of the parastatal.
"With the souring debt of $2,4 billion against increasing demand for provision of potable water services to various consumers and escalating costs, Zinwa was left with no option but to issue notices of cessation of service to defaulting customers," said Dr Masuka.
The continued non-servicing of the debt has crippled Zinwa resulting in crippling lack of funding for critical inputs such as chemicals, fuels, electricity, repair and maintenance costs, among others.
Zinwa's monthly obligations amount to $643 million against collections of $200 million (31 percent) at national level.
This has led the water authority to install bulk disconnections, in a bid to recover the debt. Addressing Parliament recently, the Minister of Lands, Agriculture, Fisheries, Water and Rural Resettlement Dr Anxious Masuka confirmed that the two owe 80 percent of the Zinwa debt for local authorities.
" . . . . from January 2020 to July 2021 clearly indicating that the two owe substantial amounts and have neglected to pay for their dues. Beitbridge made a single payment of $14,8 million in June 2020, the only payment it made between January and July 2021, leading to a cumulative debt of $198,3 million. For Gwanda, the debt accumulated from $16 million in January 2020 to $181 million in July 2021. The only major payment by Gwanda was a set off of a stand they gave to Zinwa valued at $12 million in October 2020. Otherwise, payments are approximately $2 million monthly and very inadequate for the services that they are provided," said Dr Masuka.
The payment rate to Zinwa for the two local authorities (Beitbridge and Gwanda) combined is 14 percent while Hwange is 80 percent, similarly Karoi is 75 percent. According to Dr Masuka, as of 30 July 2021, Zinwa was owed $2,4 billion by institutions that continue to receive portable water supply services from the parastatal albeit with many continuing to default on their payments.
This debt has massively impacted negatively on the operational effectiveness and efficiency of the parastatal.
"With the souring debt of $2,4 billion against increasing demand for provision of potable water services to various consumers and escalating costs, Zinwa was left with no option but to issue notices of cessation of service to defaulting customers," said Dr Masuka.
The continued non-servicing of the debt has crippled Zinwa resulting in crippling lack of funding for critical inputs such as chemicals, fuels, electricity, repair and maintenance costs, among others.
Zinwa's monthly obligations amount to $643 million against collections of $200 million (31 percent) at national level.
Source - sundaynews
