By Correspondent
Gweru City Council’s financial state is getting worse after the money it is owed increased to US$14,739,112 this month.
In January the figure was US$10,535,307 and Finance Deputy Director Owen Masimba says the situation isn’t tenable going forward.
The poor revenue collection percentage from its 2024 first-quarter Budget Performance Review provides for a negative picture.
The Council has since resolved to engage a debt collector to chase after the money.
The financial position for Gweru council is a continuation from last year.
In 2023 Gweru collected $80,3 billion in rates and other service charges representing 71 percent of the target revenue of $113 billion.
However, the debtor’s book also stood at a massive at $64,2 billion.
Council has expressed concern over subdued revenue inflows amid concern over liquidity challenges.
These are mainly due to non-payment of arrears, which has frustrated provision of efficient service delivery.
The council has also admitted to failure to service its own creditors on time, including struggling to pay workers.
A move to bill residents in US$ has also faced resistance from residents associations such as Gweru Residents Trust and Gweru Residents and Ratepayers Association.
