Suburban
FOUR local authorities bordering Harare owe the capital city more than $1 billion in unpaid bills while Government departments are indebted to the municipality to the tune of more than $800 million for the first five months of this year, a council report says.
Suburban Reporter
On its part the City of Harare owes its creditors who include the Zimbabwe Revenue Authority, ZESA, water chemical suppliers and other statutory bodies a total of $4,647 billion.
The City of Harare’s budget performance report for the period from January to May this year, shows that Chitungwiza Urban Council, Norton Town Council, Ruwa Local Board (Zimre Park), Ruwa Local Board (Ventersburg), Ruwa Local Board and Epworth Local Board owe the capital a total of $1 071 966 126 in unpaid water charges. Harare supplies water to the neighbouring towns and local boards and the staggering debt has accumulated in the first five months of this year alone.
Naturally Chitungwiza as the biggest of the four local authorities owes the largest chunk of the debt with its figure at ZWL$488 109 147 while the second biggest municipality among the four Norton Town Council owes Harare a total of $351 861 330. Ruwa (Zimre Park) owes a total of $89 702 208, Ruwa Ventersburg ($73 515 919, Epworth Local Board ($66 258 874) and Ruwa Local Board ($42 458 649).
A total of 10 Government Ministries and Departments owe the City of Harare a combined $811 378 162.74 in unpaid rates and other charges with the Ministry of Defence accounting for the largest figure of$506 667 656.76 while the Zimbabwe Republic Police is indebted to council to the tune of $71 653 085.62 and the Zimbabwe Prisons and Correctional Services $67 690 685.28.
The Judicial Services Commission owes Harare $60 409 619.17, the Ministry of Local Government $37 081 766.87, the Ministry of Health $32 537 921.40, the Ministry of Agriculture $22 008 131.79, Central Vehicle Registry $10 207231.97, Parliament $2 052 240.56 and the Department of Social Services $1 049 823.32.
Harare’s creditors are Zimra, ZESA, water chemical suppliers, the Local Authorities Pension Fund, the National Social Security Authority, the Harare Municipality Medical Aid Society, leave pay and other trade creditors.
Water chemicals at more than ZWL$1 billion ($1 144 680 980), Electricity ($920 084 035) and fuels and oils ($347 290 542) and hiring ($133 690 435) are the goods and services key cost drivers. During the same period, council spent a total of $316 342 005.66 (some of it from Devolution Funds allocated by central Government) to buy 10 refuse compactors, 15 tipper trucks, 26 desktop computers, 20 motorcycles and one drill.
In the period under review, the City of Harare received a total of $73 259 190 from Devolution Funds and used $73 313 417. The city’s annual allocation under Devolution Funds is $2,335 billion. In the same period the municipality got $131 086 416 from the Zimbabwe National Roads Administration and used $113 856 554 from an annual allocation of ZWL$825,812 million.
In its projection of the third quarter outlook, the municipality said inflation, the Zimbabwe dollar-United States greenback exchange rate volatility and arbitrage remain challenges.
