MARONDERA- The Municipality of Marondera continues to struggle to stay afloat financially with recent revelations showing that the local authority owes its creditors $22 million.
Some of the council’s creditors include the Zimbabwe Revenue Authority (ZIMRA), Zimbabwe Electricity Transmission and Distribution Company (ZETDC), National Social Security Agency (NSSA), Zimbabwe National Water Authority (ZINWA) and some of the workers who were retrenched two years ago, among others.
In an interview, Finance Director John Kachingwe conceded that the council has continued to accumulate debts over the years, a development he said would end up choking its growth projection.
He said: “We have continued to accrue debts and if this were to continue unabated, the debts will choke our growth as a town and our assets will be at risk.
“That goes without saying that we are trying our best to pay some of our creditors and we have made payment plans with most of them. Sometimes, we are constrained to sustain the agreed instalments due to liquidity challenges that we are facing.”
Kachingwe said this year, the local authority which is also owed $28 million by residents, will be capacitating its existing and new income generation projects to boost its coffers.