Residents say NO to debt collectors

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By Chitownews reporter

Zengeza 2– Residents of Chitungwiza have said NO to debt collectors which are set to be contracted by the municipality to recover large sums of money that is owed by residents, business, schools, churches and other stakeholders.

This emerged at the 2018 budget consultative meeting that was at Municipal offices at Zengeza 2 shopping centre on Tuesday.

Residents urged the municipal to set up the debt collection department within its organizational structures because private debt collectors are expensive and they bring complications to residents.

After the 2013 general election, the municipality contracted the Paul Mangwana debt collectors and the contract was later terminated after residents complained against them.

“Why not set up a debt collection department within the municipal operations so as to reduce the expenses since debt collectors charge exorbitant fees,” said Mrs Nyamukapa of Zengeza 5.

When debt collectors recover debts on behalf of an institution they first take their charges before submitting the funds and they usually take huge amounts of money for their service.

“We don’t want debt collectors here. Why not engage with the residents and devise payment plans without engaging debt collectors,” said Edson Mangava of Zengeza 2.

Chitungwiza municipality is owed more than $62 million by various stakeholders with residents owing more than $25 million and business owing more than $35m, and the municipality is owing $67 million to various service providers.

From January to August 2017 the municipality anticipated to collect $17 million but only managed to collect $5 million only thereby creating a budget shortfall of $12 million

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