Gweru charges bills in USD

GWERU City Council (GCC) has with immediate effect, begun to charge rentals and bills in United States dollars.

The bills will be payable at the prevailing interbank rate.

Ratepayers owe the city council more than $1,6 billion.

The local authority is borrowing a leaf from Bulawayo City Council which last week announced that it was with immediate effect charging bills in US dollars at the prevailing bank rate.

The Government has however, distanced itself from the Bulawayo City Council move.

Acting town clerk, Mr Vakayi Douglas Chikwekwe, said the decision to charge bills in US dollars is aimed at capacitating the local authority to provide adequate service delivery.

"We now have rates, bills and services charged in the United States dollars but we will be using the prevailing interbank rate. We are not going to use the parallel rate," he said.

Mr Chikwekwe said council is incapacitated to pay for fuel, water and waste treatment chemicals.

"The prevailing economic conditions such as changes in the exchange rate, substantial increases in prices of key service delivery inputs namely fuel, water and waste water treatment chemicals, medicine, stationery and spare parts among others have forced council to make this decision," Mr Chikwekwe said.

He said by the time ratepayers pay monthly bills and or settle their debts the money would have lost its value.

Defaulting Gweru clients from three months going up are being affected by the 5 percent interest rate according to Mr Chikwekwe.

"Customers who are paying are not affected and we are looking at discounts to thank them for being loyal to the council," said Mr Chikwekwe.

He said the council now owes creditors $355 million with the bulk being to Zesa which is owed more than $240 million.

"If we get the $1,6 billion from our customers, we will easily pay off our creditors the $355 million.

"We face power cuts from Zesa as they force us to settle electricity bills time and again and that also affects water availability to the customers especially the residents. So we are hopeful that the 5 percent interest rate will go a long way in cushioning council coffers," said Mr Chikwekwe.

GCC is also in the process of implementing stringent debt recovery measures such as demand letters, summons, attaching property, writs of execution of property and disconnections to force debtors to settle their debts on time.

The Parliamentary Portfolio Committee on Public Accounts recently said local authorities should be allowed to charge companies involved in exporting or selling products in foreign currency, in forex.

Chairperson of the committee Mr Brian Dube said that would help local authorities improve service delivery. Rate payers, especially in urban areas, have to cope with persistent water shortages, uncollected litter, pothole infested roads and sanitation problems as municipalities struggle to provide basic services mainly due to unavailability of foreign currency.

Fuel, spare parts and other consumables needed by local authorities to improve service delivery are sold in foreign currency especially the United States dollars yet local authorities are charging rates and services in local currency.