Source: BCC fails to recover $4m from closed companies – NewsDay Zimbabwe June 13, 2017
BULAWAYO City Council (BCC) is failing to recover close to $4 million owed by companies which have closed or relocated from the city owing to the harsh economic climate in the country, latest council minutes reveal.
By NQOBANI NDLOVU
The companies are not paying anything towards reducing their bill for water and sewerage services, while the local authority continues to charge the closed firms a 6% interest, resulting in the outstanding bill reaching $3 407 727,19.
“The acting financial director Cyprian Bongani Dabengwa reported (May 19, 2017) that the harsh economic environment prevailing in the country had forced the business community to either curtail production or close shop altogether and some concerns or businesses had been liquidated.
“Most of these businesses or companies had rates and water accounts with the City of Bulawayo,” a council report of the finance and development committee read.
“The accounts were currently accruing interest at 6% per annum and prospects of recovering the outstanding balances were not good at all.
“It would be prudent in terms of accounting not to accrue interest on these accounts. The acting financial director, therefore, recommended that the accrual of interest on the accounts be stopped immediately.”
Dabengwa explained that the companies were under liquidation, while efforts were being made to recover interest through lawyers.
He said interest figures were distorting the statements.
Estimates from business representative groups say over 200 000 employees in Bulawayo have been made jobless after companies closed, relocated to other cities or downsized over the years.