Among the companies are Zimbabwe United Passenger Company, Cold Storage Commission, PG Zimboard, Pilkington Glass Zimbabwe, Caltex Oil Zimbabwe and Total Zimbabwe.
Addressing a full council meeting last week, the Town Clerk, Obert Muzawazi, said they owed about $22 million. He said council had engaged its lawyers to make sure the council recovered its money.
“Defaulters are making council business difficult. We need money to carry out service delivery in the city. We are forced to go to the courts because we are owed millions of dollars by defaulters,” said Muzawazi.
About 100 companies operating in the city are expected to appear in court this week over unfulfilled debts. Muzawazi said the bulk of the defaulting companies had failed to service their rates.
The high defaulting rate has been attributed to economic hardships facing industries in the eastern border city that resulted in the closure of big companies like Mutare Board and Paper Mills, Karina and many others.
Post published in: News