The Sunday Mail
Sunday Mail Reporter
The Zimbabwe National Water Authority has launched an aggressive debt collection drive targeting Government departments, farmers, parastatals and local authorities to recoup US$96 million that it is owed. Zinwa has reportedly failed to pay workers’ salaries for months, statutory taxes to Zimra and pension remittances to NSSA. Workers’ medical aid subscriptions are also unpaid.
This has left the water authority exposed to a raft of legal problems from a restless workforce, pension authorities and the tax man.
However, Zinwa says it has come up with a cocktail of measures that will see farmers, Government departments, State-owned entities and others having their water supplies cut and — in some cases — defaulters losing property through court action.
Zinwa said it will this week finalise the selection of a professional debt collector to immediately take action against those in arrears. Information gathered by The Sunday Mail shows that farmers are the biggest defaulters, with debts of about US$35 million. Government departments owe Zinwa at least US$20 milllion, while local authorities are indebted to the tune of US$23 million. State-linked firms account for over US$5 million of the debt, while domestic consumers and mines owe the parastatal US$9 million and US$3 million, respectively.
Despite benefiting from last year’s debt write-off, domestic consumers and local authorities have continued to default. Local authorities pay for raw water drawn from dams which they purify for distribution. Government pays for treated water used by its institutions and departments, while farmers pay for using dam water directly.
Zinwa corporate communications and marketing manager Mrs Marjorie Munyonga said they would not baulk at approaching the courts to get their money. “At the moment ZINWA is owed in excess of US$96 million. Except for domestic consumers and local authorities who benefited from the 2013 debt write-offs, all other debtors accumulated their respective amounts since the inception of the multi-currency regime in 2009.
“The debts have seriously affected ZINWA’s operations in a big way. The authority is having difficulties procuring spares for repairs, water treatment chemicals and related maintenance work. The authority has also failed to pay its statutory obligations such as taxes, NSSA remittances, employee salaries, medical aid and Zimdef.
“ZINWA has drawn up various measures to compel debtors to pay. These include disconnection of supplies, using debt collectors and in some cases taking defaulters to court.”
