Source: The Herald – Breaking news.
Nqobile Bhebhe, Senior Business Reporter
THE Bulawayo City Council recovered US$2,1 million of the debt owed by ratepayers in January this year, reflecting only 21 percent success rate against targeted collections of US$10,1 million.
Through its strategic debt recovery approach, designed to improve collection efficiency and financial stability, the council is working hard to recover debts owed by residents and industrial customers.
During the period under review, the local authority carried out 14 286 debt recovery actions, including final demands, disconnections, 24-hour notices, and phone calls to debtors.
According to the latest council report, the city had targeted to recover US$3,4 million from industrial customers but managed to collect only US$1,4 million, a 42 percent efficiency rate.
A total of 881 debt recovery actions were issued in the sector.
“A total of 14 286 various debt recovery actions as shown above were carried out with a targeted amount of US$10,1 million.
“Payments amounting to US$2,1 million (21 percent) were received directly as a result of the debt collection efforts,” reads part of the Finance and Development Committee report.
The report further notes that 695 debt recovery actions, specifically 24-hour notices, were issued against the central business district (CBD) clients.
Council authorities had planned to recover US$1,1 million but managed to collect only US$46 819 60 reflecting a four percent success rate.
The report also indicates that US$662 056 59 was targeted for recovery from schools, but only US$57 889 45 was realised.
According to the city’s debtors report, the balance of the industrial and commercial debt in January stood at US$11,604 million while domestic debt was US$31, 098 million.
In terms of residential areas, Mpopoma had 1 965 final demands issued, targeting US$199 712 80.
The council recovered US$74 315 92, reflecting a 37 percent efficiency rate.
Paddonhurst recorded a high efficiency recovery rate of 68 percent with US$79 223 87 collected against a target of US$116 067 32.
In Lobengula, the council achieved a 50 percent recovery efficiency rate, collecting US$38 098 03 against a target of US$76 196 06.
The report notes that the total billed income for the months January to March 2024 was ZiGG 553 billion.
The billed income for January 2025 alone was ZiG 278 527 252 58, equivalent to US$10,6 million.
Collection efficiency for billed accounts was recorded at 53 percent in November 2024, increasing to 55 percent in December 2024.
The council noted that February 2025 receipts would be measured against January 2025 billing in the next month’s report.
At the end of January 2025, the debtors’ figure stood at ZiG1,2 billion, compared to ZiG 1,084 billion at the end of December 2024.
This reflects an increase of ZiG 132 million, or a 12 percent rise in outstanding debt.
“The increase in the debt was attributed to the devaluation of the local currency and resource constraints in the debt management section,” reads the report.
