Harare City Council is grappling with a severe financial crisis as ratepayers owe a staggering $1.5 trillion, posing significant challenges for revenue collection and service delivery.
According to Town Clerk Engineer Hosiah Chisango, the municipality’s revenue collection efficiency has reached an all-time low, exacerbating the situation. Despite efforts to improve service delivery, the council’s inability to effectively collect owed funds has led to a significant increase in debt.
Chisango emphasized that this financial strain hampers the council’s ability to allocate resources efficiently, meet service demands, invest in infrastructure, and manage debt effectively. The outstanding debt has surged from $783.2 billion at the end of last year to the current $1.5 trillion mark as of February 29, 2024.
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He also highlighted the impact of currency fluctuations on the value of the debt, noting that while the debt figure in Zimbabwean dollars has risen, its actual value has diminished due to exchange rate movements.
In another story, Harare Mayor, Jacob Mafume, has promised decisive action over delays in procuring an enterprise resource planning (ERP) system crucial for billing ratepayers. He accused certain council officials of colluding with Procurement Regulatory Authority of Zimbabwe (Praz) representatives to exploit the disorderly billing system for personal gain. Harare City Council
Speaking at an extraordinary full council meeting in the capital, Mafume expressed suspicions of a clandestine arrangement between the council and Praz to hinder the implementation of the ERP system. He vowed to address these concerns directly with Praz officials…read in full
