Harare City Council is facing a financial crisis due to low revenue collection efficiency, resulting in delayed payment of wages to its employees.
The council is owed just over $317 billion by different stakeholders.
Town Clerk, Hosiah Chisango, said that low collection efficiency could lead to inefficient resource allocation, inability to meet service demands, inability to invest in infrastructure and increased debt.
He said the council had reached an all-time low in revenue collection because it had not made reasonable efforts to collect what it is owed.
The council has also had challenges in procuring an Enterprise Resource Planning (ERP) for the city.
“We are here because the city is in a financial crisis. For the first time, in many years, we are failing to pay salaries on time,” he said.
“For you to fully appreciate the crisis we are facing currently, our collection efficiency is at 35 percent and we are owed $317 billion.
“In summary, low collection efficiency has a significant impact on service delivery by reducing revenue, leading to inefficient resource allocation, inability to meet service demands, inability to invest in infrastructure, and increased debt.
“This is the situation we are facing as council.
“Executive and district officers have a role to play in rescuing the city from sinking further. We are not able to provide services to the expectations of the residents and, as a result, they are not paying.”