6 November 2017

Zimbabwe: Redcliff Municipality Says Revenue Up 100pct After Zisco $38m Boost

The $38 million windfall availed by government as part of the outstanding salaries backdated to 2009 to ex- Ziscosteel employees has revived Redcliff Municipality as revenue has dramatically improved at the local authority.

Government has since signed an agreement with Hong Kong-based R&F to invest $1 billion to revive Ziscosteel.

According to Redcliff municipality finance committee, revenue for the past three month,s has improved after the former employees have started receiving their outstanding salaries.

"Revenue collection has dramatically improved at the local authority," Finance Committee Chairperson, Clayton Masiyatsva, said.

Msiyatsva said revenue inflows at the local authority were less than $100 000 per month.

The municipality, Masiyatsva said, is now getting over $200 000.

"After council severed council with debt collectors we have noted a significant improvement in terms of revenue collection," he said.

He added, "As council we are putting in place internal debt collection measures."

The chairperson also said the selling of upgraded housing systems by council to sitting tenants has significantly boosted revenue inflow in the local authority.

"We have a cost code with Ziscosteel where the company collects money for the housing units on our behalf," he said.

"Council is also working to put in place systems where our employees will have door-to-door visits with swipe machines so as to ease transaction challenges for rate payers and also to boost our revenue," he said.

Two months ago, government agreed to settle Ziscosteel employees' salary arrears in tranches.

Government awarded the company $38 million as part of the workers' salary arrears of $53 million debt.

The money covers the 2009 to November 2014 period.

Redcliff municipality had been struggling to provide basic services and also paying its employees.

Workers had gone for 22 months without pay.

The nearby Kwekwe City Council has been cutting off water supplies to its neighbour over a $ 2 million debt.

Acting Finance Director, Lindiwe Whata, said Redcliff's obligations stand at $22 million.

Council's biggest debtor is Ziscosteel which owes $12 million.

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