News / National
Gweru City Council rejects payment plans for unpaid bills
05 Jun 2017 at 06:53hrs | Views
Gweru City Council has rejected 10-year payment plans from more than 50 companies for a combined debt of about $18 million in unpaid bills. The local authority has threatened to go ahead with auctioning property worth millions that it attached from the companies in the last two months.
Town Clerk Ms Elizabeth Gwatipedza said some of the companies which owe Gweru City were offering peanuts towards settling their bills.
She said some of the companies were offering 10-year payment plans. "We have this situation whereby large companies are offering over 10 years payment plans and such actions will be at the cost of the Gweru City Council as we will not able to collect our revenue. Therefore as Gweru City Council we are not accepting such payment plans for it will take more years to recover these large amounts of money," she said.
Ms Gwatipedza told The Chronicle that these companies are free to apply for loans to settle their bills.
"These companies must go forward and try to source funds and apply for loans so that they can be able to pay the amount of money they are owing to the Gweru City Council," she said.
Gweru Mayor Councillor Charles Chikozho said they have been encouraging debtors to come up with realistic payment plans. "We have been encouraging debtors to come up and settle their bills through arranging reasonable payment plans. Some of our efforts have failed because of the liquidity crunch and the residents' failure to own up and pay the dues to the council. We have handed some debtors to legal practitioners to recover the debts," he said.
Town Clerk Ms Elizabeth Gwatipedza said some of the companies which owe Gweru City were offering peanuts towards settling their bills.
She said some of the companies were offering 10-year payment plans. "We have this situation whereby large companies are offering over 10 years payment plans and such actions will be at the cost of the Gweru City Council as we will not able to collect our revenue. Therefore as Gweru City Council we are not accepting such payment plans for it will take more years to recover these large amounts of money," she said.
"These companies must go forward and try to source funds and apply for loans so that they can be able to pay the amount of money they are owing to the Gweru City Council," she said.
Gweru Mayor Councillor Charles Chikozho said they have been encouraging debtors to come up with realistic payment plans. "We have been encouraging debtors to come up and settle their bills through arranging reasonable payment plans. Some of our efforts have failed because of the liquidity crunch and the residents' failure to own up and pay the dues to the council. We have handed some debtors to legal practitioners to recover the debts," he said.
Source - chronicle
