Mutare business community owes the local municipality millions in unpaid rates and levies, prejudicing its capacity to provide quality service delivery.
To compound matters, it has also emerged that the business community is also failing to pay its bills on time, further compounding financial burdens as the local currency is subject to hyperinflation shocks.
This emerged at the recent grand draw of a bills promotion, where the business community forfeited two residential stands, as over hundreds of entries into a council draw had not cleared their 2019 arrears.
With a condition of an up to date account as pre requisite for winning the grand prize, entries after entries of the business community were picked but none of them had settled their 2019 dues. ‘
Residents who attended the ‘Maintain an up to date Account Promotion’ said this vindicates residents who have always suspected that businesses were not paying despite received the big chuck of service delivery.
United Mutare Residents and Ratepayers Trust (UMRRT) programs director Edson Dube said it was ironical that the privileged members of society who can afford to run business are not paying their full share.
“This vindicates residents that they have been yet the business community despite owning income generating ventures businesses are not paying.
“This goes to show that residents are an important stakeholder in the council and should be respected for the role they play. They have shown that they are loyal,” said Dube.
Finance Director, Blessing Chafesuka revealed that the business community alone owes the local municipality an upwards of RTGS $50 million in unpaid rates.
He however sought to dismiss the boob at the draw as owing to accounting systems of businesses, which use bank transfers instead of cash payment at council premises.
Chafesuka said some of the business have engaged council and agreed on payment plans.
“Council is owed across the board by residents and the business community and this has a negative impact on service delivery in the city.
“While I cannot say offhand exactly how much business owes, because we would have to reconcile, but it’s safe to say that the business community owe an upwards of RTGS$50 million in unpaid rates.
“The promotion may not necessarily give a clear picture or the payment the business community is making. Generally, business has been responsive in terms of payment because some of them have engaged us with payment plans which they are honoring” he said.
Chafesuka said council has since devised a robust debt recovery strategy which is paying dividends as the city has multiplied its monthly debt collections average tenfold.
“We have devised a robust debt collection strategy and we have a new team that is doing our debt recovery and we have recorded a significant increase from a monthly average of around $3 million to around $37 million,” he said.
