Home » ZWG860 Million Debt Crisis Hits Gweru Services

ZWG860 Million Debt Crisis Hits Gweru Services

by commuadmin

By Perfect Chivima (GWERU):

Mayor Martin Chivhoko has revealed that the City of Gweru is owed ZWG860 million in unpaid rates and service charges, warning that the growing debt is seriously affecting the council’s ability to deliver services.

Speaking at the 721st Full Council Meeting, Chivhoko said the arrears are placing heavy pressure on council operations, limiting its capacity to maintain infrastructure and meet residents’ basic needs.

A major part of the problem involves the Zimbabwe National Water Authority (ZINWA). City Chamber Secretary Owen Masimba explained that Midlands State University (MSU), which owes ZWG9 million, does not pay the city directly due to a service agreement between MSU, ZINWA and the council.

“MSU is outside the city boundary and pays its water bills through ZINWA. Unfortunately, some of those payments were not passed on to us and the matter is now before the courts,” Masimba said.

He added that council had previously engaged both MSU and ZINWA after discovering that funds had been paid but not transferred to the city.

Masimba also said the council faces wider challenges in recovering money, especially from companies under judicial management.

“Some debtors are legally protected, which means we cannot take action against them even though they owe us. They appear on our records, but the law limits what we can do,” he explained.

He further noted that large debts take longer to recover because they must be handled by the High Court.

“Smaller debts are dealt with in the magistrates’ court and are easier to enforce, including thorough property attachment. Bigger cases go to the High Court, and that process takes more time,” Masimba said.

Gweru City council officials commend that improving revenue collection remains a top priority as the city continues to face serious financial and service delivery challenges.

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