By Flata Kavinga
Zibagwe Rural District Council (ZRDC) could write off a significant portion of the US$13,195 owed to it by Telecel Zimbabwe after the telecommunications company was placed under corporate rescue.
Speacking during a full council meeting ZRDC chief executive officer Farayi Machaya said that Telecel creditors had been advised that they would receive a maximum of 40 percent of amounts owed to them.
Machaya said council had attended a meeting involving Telecel creditors, where the Master of the High Court ruled on the proposed settlement under the corporate rescue process.
“Telecel is currently under Corporate Rescue. A meeting with various Telecel creditors was held, and the Master of the High Court ruled that creditors would be settled to a maximum of 40% of the debt,” Machaya said.
Council is owed US$13,195 by Telecel, meaning the maximum recovery under the ruling would be about US$5,278, leaving approximately US$7,917 potentially unrecovered.
Machaya said council would seek approval to write off the remaining balance after receiving the amount due.
He said the move would be pursued in terms of Section 133(2)(a) of the Rural District Council Act [Chapter 29:13].
The Telecel debt forms part of Zibagwe RDC’s broader debtor-recovery challenges, with council reporting total debtors of ZWG124,076,231.20 at the end of September.
Council’s creditors stood at ZWG22,190,773.37 during the same period, according to Machaya.
