200 Gweru companies face legal action over unpaid council bills

Date:

By a Correspondent

City of Gweru has served about 200 high-value commercial debtors with legal notices after they failed to comply with a final ultimatum to settle outstanding rates amounting to nearly US$5.7 million.

The local authority had set July 14 as the deadline for residents and businesses to clear arrears, warning that enforcement measures, including service disconnections, shop closures and legal action, would follow for defaulters.

Council is seeking to recover about ZWG1.3 billion (US$49 million) owed by residents and ratepayers.

Council spokesperson Vimbai Chingwaramusee (pictured) said the debt recovery exercise was focusing on the biggest defaulters through a targeted approach.

Chingwaramusee said 13 278 residential accounts with arrears exceeding ZWG10 000 (about US$375), valued at ZWG316,8 million (US$12 million), had been identified.

In addition, 633 commercial accounts owing more than ZWG50 000 (about US$1 900), with combined arrears of ZWG151,5 million (US$5,7 million), were profiled.

“Together, these accounts represent approximately 36 percent of the City’s ZWG1,3 billion debtor book and form the focus of the current recovery exercise,” said Chingwaramusee.

She said about 200 commercial accounts had already been served with legal notices, while the city was continuing to engage residential debtors, who had responded positively to the payment campaign. Chingwaramusee said council was following a phased enforcement strategy, beginning with summons and giving debtors an opportunity to settle their accounts or enter into payment arrangements.

“Where there is no positive response, the City proceeds with cessation of municipal services and shop closures where applicable. Property attachment remains a measure of last resort and is only pursued after all statutory legal processes have been exhausted,” she said.

The spokesperson said the debt recovery campaign had so far yielded ZWG468,3 million (about US$18 million), representing 36 percent of the city’s total debtor book.

“These recoveries demonstrate that the debt recovery strategy is yielding positive results and strengthening the City’s financial capacity to sustain service delivery,” she said.

Chingwaramusee said the recovery programme would continue, urging residents and businesses with outstanding accounts to clear their arrears or negotiate payment plans to avoid legal action.

Gweru Residents and Ratepayers Association executive director Cornelius Selipiwe urged residents to take advantage of the opportunity to regularise their accounts.

“It is important for residents to meet their obligations so that council can continue providing services. While property attachment is not desirable, people should engage council and make payment arrangements,” Selipiwe said.

Gweru Residents Association secretary Chipo Chipedza also called for greater engagement between council and debtors.

“Those who owe council should approach the local authority and agree on payment plans to avoid the unfortunate and undesirable issue of property attachment,” Chipedza said.

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