GWERU City Council has issued a stern ultimatum to its debtors, demanding settlement of outstanding dues by December 31. Those failing to meet the deadline face the prospect of their arrears being converted into United States dollars, according to a public notice released by the local authority.
The city council is grappling with the challenge of recovering a staggering $54 billion owed by residents, businesses, and government entities. In an effort to compel payment, the council has also threatened legal action against defaulters.
A statement from Gweru City Council read, “Clear your bills before 31 December 2023, and failure to comply may result in your bill being converted into USD. Failure to clear your bills will result in litigation.”
Gweru City Council spokesperson Ms Vimbai Chingwaramusee revealed that, as of October 31, ratepayers owed the council $54 billion. She attributed the mounting debt to the failure of ratepayers to fulfill their monthly payment obligations.
The council is struggling to maintain essential services due to the substantial outstanding debt. Ms Chingwaramusee emphasized, “We need to use that money to meet service delivery expenses such as buying fuel and other such expenses.”
Due to non-payment by ratepayers, the city council is now grappling with significant arrears owed to service providers, including Zimbabwe Revenue Authority (Zimra), Zimbabwe Electricity Transmission Distribution Company (ZETDC), and the Local Authorities Pension Fund (LAPF).
Gweru Mayor Councillor Martin Chivhoko expressed his concern over the situation, attributing it to the reluctance of ratepayers to settle their bills. He highlighted the critical need for funds to fulfill the council’s obligation of providing services to residents and the business community.
“If residents and other ratepayers pay their bills, council will also be able to pay its service providers as well as meet other financial obligations,” said Clr Chivhoko.
Director of the Gweru Residents and Ratepayer Association (GRRP) Mr Cornelius Selipiwe urged defaulting residents to clear their arrears, emphasizing the importance of consistent payments to enable the council to operate.
Earlier in the year, the council implemented debt recovery measures, including the suspension of interest on arrears, and threatened legal action against defaulters in a bid to address the financial challenges.