via Harare owed $264m as industry defaults 05 November 2014
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.
Presenting the 2015 budget, HCC finance and development Committee chairperson Tranos Moyo said the debtors’ book keeps expanding on the back of persistent cash shortages, low capacity utilisation and company closures.
“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.
“Industrial/commercial (companies) owe $147 million in rental arrears among other service charges. Government and parastatals also owe over $10 million.”
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.
COMMENTS
The city of Harare commercial rates are 2.5% of the property value per year; Johannesburg is 1%. The city provides no services for rates paid. between these two factors, industry and commerce can not afford rates nor is there are service delivery incentive to pay them.
The City of Harare is a failure — like Mugabe – they have all been in post since 1980 – except those that have died.
The whole of Zimbabwe is a failure all done on the back of so called liberation.
City of Harare is simply not providing any service at all.Roads are disgusting litter eveywhere and no domestic water supply in 9 years. Fire half your staff(sorry relatives) and provide us with what we are paying for!