Zibagwe takes legal action against defaulters
ZIBAGWE Rural District Council (RDC) has resolved to institute legal action against several defaulting corporates and individuals in a bid to recover a $1,8 billion debt.
The debt is weighing down on service delivery at a time when the rural authority is also struggling to service its creditors as it owes $594 million as of June 30, 2023.
In a statement during a council recently held meeting Zibagwe RDC Chief Executive Officer, Mr Farayi Desmond Machaya singled out Sable Chemicals, ZPC Munyathi and Jena Mines as some of the companies who are reneging on set debt clearing arrangements. He said numerous attempts to engage debtors have not been fruitful, hence the decision to invoke Section 151 of the RDC Act to recover their dues.
“Corporates such as Jena Mines, Sable Chemicals, and ZPC Munyathi are among those debtors who are no longer servicing their debt despite various engagements with them. This has prompted us to invoke Section 151 of the RDC Acct (Chapter 29:13) to recover our dues,” he said.
Section 151 of the RDC Act states that ‘where any levy, rate, special rate, charge or rent imposed or made by a council in terms of this Act remains unpaid after the date on which it becomes due and payable, the council may recover it by action or other proceedings in the court of the magistrate within whose area of jurisdiction’.
The non-servicing of debts is crippling operations and financial plans as the cost of goods and services continued to increase in the period under review, added Mr Machaya.-chronicles
