The Harare City Council (HCC) debtors’ book has ballooned to $294 million as at September 30, from $212 million last year as defaults spiked in the faltering economy despite stagnating rates for the last four years.
The city council last Thursday proposed a $272.7 million budget for 2015 and said its debts had risen to $219 million during the year from $174 million in the prior year.
Of the amount, $122 million relates to employment costs in the form of statutory deductions.
“The city owes service providers like Zimbabwe Revenue Authority, Zesa Holdings, Local Authority Pension Fund, Harare Municipal Medical Aid Society (HMMAS) and National Social Security Authority (NSSA) $121 million.
“Harare Water owes ZESA, Value Added Tax (VAT), payroll deductions, chemicals among others $97 million,” HCC finance and development Committee chairperson Tranos Moyo said.
Presenting the 2015 budget, Moyo said the debtors’ book keeps expanding on the back of persistent cash shortages, low capacity utilisation and company closures.
“Industrial/commercial (companies) owe $147 million in rental arrears among other service charges. Government and parastatals also owe over $10 million,” he said.
He linked the city’s revenue underperformance to the continuing decline in the manufacturing sector capacity utilisation, which averaged 36 percent this year, from nearly 40 percent last year according to the Confederation of Zimbabwe Industries.
Moyo also said high density residential areas also owe $77 million while arrears in the low density residential areas were at $54 million.- The Source
Harare council owed $294m
The Harare City Council (HCC) debtors’ book has ballooned to $294 million as at September 30, from $212 million last year as defaults spiked in the faltering economy despite stagnating rates for the last four years.
The city council last Thursday proposed a $272.7 million budget for 2015 and said its debts had risen to $219 million during the year from $174 million in the prior year.
Of the amount, $122 million relates to employment costs in the form of statutory deductions.
“The city owes service providers like Zimbabwe Revenue Authority, Zesa Holdings, Local Authority Pension Fund, Harare Municipal Medical Aid Society (HMMAS) and National Social Security Authority (NSSA) $121 million.
“Harare Water owes ZESA, Value Added Tax (VAT), payroll deductions, chemicals among others $97 million,” HCC finance and development Committee chairperson Tranos Moyo said.
Presenting the 2015 budget, Moyo said the debtors’ book keeps expanding on the back of persistent cash shortages, low capacity utilisation and company closures.
“Industrial/commercial (companies) owe $147 million in rental arrears among other service charges. Government and parastatals also owe over $10 million,” he said.
He linked the city’s revenue underperformance to the continuing decline in the manufacturing sector capacity utilisation, which averaged 36 percent this year, from nearly 40 percent last year according to the Confederation of Zimbabwe Industries.
Moyo also said high density residential areas also owe $77 million while arrears in the low density residential areas were at $54 million.- The Source
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