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Chipinge council to use inter-bank rates

14 Jun, 2019 - 00:06 0 Views

The ManicaPost

Luthando Mapepa Chipinge Correspondent
Cash-strapped Chipinge Town Council will this month start to use the prevailing United States dollar inter-bank market rate in all outstanding bills in order to recover millions of dollars it is owed by residents and the business community.

The council, which is owed over $2 million by resident, wrote a circular this week to all residents advising them to clear arrears.

“Dear  resident, by June 21, 2019 Council will use current prevailing USD rate to all outstanding bills/debts. Please pay your bills before this date,” reads part of the circular to residents.

Addressing residents last week notifying them about the new development, the town treasurer Mr James Mutemera said council had already engaged the parent ministry about the development.

“The council is trapped between a rock and hard surface as the revenue base continues to dwindle. Residents are defaulting paying rates while the money is deteriorating in value. Council is facing hard times to deliver services and paying its workers.

“We have engaged the minister about this issue who notified us to engage all stakeholders and discuss this issue and map the way forward,” he said.

However,residents expressed mixed reactions over the development, with many saying the move was too harsh.

One of the residents, Mr Ashira Mtirikwi Mawere said it would be unfair for the council to use the USD dollar exchange rate in all outstanding bills.

“Residents are failing to pay their current bills because of the harsh economic environment and the council should understand it. Yes the council cannot operate without collecting rates but it is too harsh to use the USD rate when charging the defaulters. We are appealing to council to stop it,” he said.

Another resident Mr Marvelous Sithole said: “We as residents have been paying for water that never comes. Why now increase when it never it come,” he said.

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