By Flata Kavinga
Redcliff Municipality has approached the Ministry of Local Government and Public Works for assistance in recovering US$21.5 million owed by Ziscosteel for water supplies, as the local authority intensifies efforts to collect outstanding revenue and meet its financial obligations.
The debt accounts for more than 60 percent of the municipality’s revenue, according to finance director Lindiwe Whata, who said council would also engage the Ministry of Finance to help resolve the matter.
Speaking to journalists after a full council meeting, Whata said the debt was placing pressure on the municipality’s finances, with Ziscosteel among its major debtors.
“Currently, Ziscosteel owes us US$21.5 million, which is quite a lot, and it’s over 60 percent of our revenue, against the total debtors of US$29 million,” she said.
Whata said council had begun intensifying revenue collection, targeting businesses operating in Redcliff that were allegedly failing to pay their rates.
“We are engaging ratepayers because most of the businesses are enjoying doing business in Redcliff but without servicing the rates,” she said.
She said the municipality had started closing shops in areas where rates were outstanding as part of efforts to improve collections.
Whata said council would extend its collection drive to Ziscosteel properties while pursuing government intervention to recover the outstanding water bill.
The finance director said the municipality was under pressure to raise funds to meet its salary payments and statutory obligations by 5 December in line with a circular from the permanent secretary.
She expressed hope that the ongoing collection initiatives and government engagements would yield positive results.
Whata also disclosed that Redcliff Municipality owed Kwekwe City Council approximately US$6 million, highlighting the financial obligations the local authority must also address.
The municipality’s efforts to recover the Ziscosteel debt come amid a broader drive to improve revenue collection and strengthen its capacity to meet operational costs and service delivery obligations.
