Staff Reporter
The Commission of Inquiry into the Matter of Local Governance by Harare City Council has agreed to establish a structured finance facility in a bid to resolve the longstanding debt crisis affecting Harare's portable water treatment.
A source privy who spoke to this publication on condition of anonymity, disclosed that the decision was made during a recent meeting between IDCZ and the Mutapa Investment Fund (MIF).
"The Industrial Development Corporation of Zimbabwe and the Mutapa Investment Fund have decided on a structured finance facility to clear the debt for water treatment chemicals," the source said.
In an effort to streamline payments and ensure accountability, the Commercial Bank of Zimbabwe (CBZ) has been instructed to execute a stop order of USD 50,000, or its equivalent value in Zimbabwe dollars (ZiG), on a daily basis.
"CBZ was directed to enforce a daily stop order of USD 50,000, which will contribute to a maximum weekly payment of USD 300,000 towards the reduction of the total debt," the source elaborated.
To further support this initiative, prominent companies such as Old Mutual and Delta Corporation have agreed to channel their payments into a designated sinking fund account managed by CBZ Holdings.
"Companies like Old Mutual and Delta are set to direct their payments into the nominated sinking account at CBZ," the source added.
The structured finance facility is seen as a crucial step in addressing the financial mismanagement that has plagued the CCC-led council.
"This approach is designed not only to clear the debt but also to prevent the misuse of funds by the opposition-led council," the source emphasized.
Moreover, the debt for water treatment chemicals has severely impacted Harare's ability to provide safe and reliable water to its residents. The financial difficulties faced by the CCC-led council have been a significant concern, with many attributing the crisis to poor management and corruption.
This intervention underscores Government's commitment to improving public services and addressing the inefficiencies within local councils. As the structured finance facility takes effect, it is anticipated that Harare’s water supply issues will gradually be resolved, providing much-needed relief to the city's residents.
