Bulawayo City Council in debt

Bulawayo City Hall (Pic extracted from the Gazette.com

BULAWAYO City Council, currently owed in excess of US$100 million by residents, companies and government is now in a precarious financial position as it battles to service a debt of US$99 million, a development that has forced the local authority to be tough on its debtors.

The local authority, also waiting for government approval of its US$158 million budget for 2015, says it is finding it difficult to deliver basic services with its debtors increasing almost every month owing to the prevailing economic challenges in the country.Bulawayo City Council (BCC)’s biggest debtor are the residents owing in excess of US$56 million followed by industry and commerce standing at US$42 million and government at US$1,9 million.

“For the domestic debt, you will appreciate that in 2013 there was a directive that as council we should write-off our debtors for the consumers,” said BCC accounting manager, Cyprian Dabengwa.

“As you can see now that debt has risen to US$56 million as at the end of February which means we are not having a lot of payments in terms of our domestic ratepayers.”

In July 2013 the government issued a directive ordering municipalities to cancel all debts owed by residents backdating to February 2009, throwing local authorities into financial turmoil that they are still battling with to date.