Latwell Nyangu, H-Metro Reporter
The City of Harare is engaging debt collectors to deal with defaulting ratepayers.
Those who delay settling their bills will be pursued and the move was set to raise revenue collection which would ensure improved service delivery.
Council is owed more than $8 billion by different rate payers.
In a post on their Facebook Page, the City said Acting Finance Director Livingstone Churu stated that only difficult customers will be pursued by debt collectors.
“Some clients are influential and non-complaint and council might not have the necessary power to pursue them.
“Collection efficiency for the month of April 2021 was at 35 percent and the collection efficiency rate should be increased to further support service delivery issues.
“My department is targeting at least 70 percent collection efficiency,” he said.
Churu added that some ratepayers had not paid anything since 2013 when debts were written off.
“The council was losing out due to late payments by clients, hence the longer council took to collect revenue would result in more losses due to the time value of money concept.
“The Committee enquired whether the use of a debt collector in debt management had assisted in council debt collection.
“There will not be a blanket referral of debts for debt collection as committee approval would be sought before referral of defaulters to debt collectors.,” he added.
Council requested Churu to ensure that ratepayers’ bills were accurate before referring them to debt collectors.