Harare City Council seizes property from 60 debtors over US$30m debt

In a move to recover over ZiG458 million (approximately US$30 million) in unpaid bills, the Harare City Council recently confiscated household property from 60 residents as part of an aggressive debt recovery campaign. The debt, owed by both residential and commercial ratepayers, has pushed the local authority to take drastic measures.

Last month, the City of Harare, acting through the Messenger of Court, seized household items such as sofas and television sets from residents with overdue accounts. These properties were later sold through public auctions, with the council continuing its efforts to recoup unpaid rates and bills.

Debtors from residential, commercial, and industrial sectors owe ZiG121 million, ZiG168 million, and ZiG140 million, respectively. Government ministries, departments, agencies, and neighboring towns that rely on Harare for services, including bulk water supplies, also contribute to the growing debt.

Earlier this year, more than 4,000 residents who had overdue balances exceeding 90 days were served with court summonses after failing to respond to 14-day letters of final demand. As a result, Harare City Council obtained court orders to seize properties from these defaulters. To date, the council has confiscated items from 60 debtors.

Documents obtained by The Sunday Mail reveal details of several cases. Ms. Julia Muteragumbe, for instance, lost her household property, including sofas and kitchen chairs, which were auctioned to recover US$390 and ZiG2,292 in unpaid rates. Negombwe Trading Company had a freezer, television set, and chairs seized to settle a debt of more than US$347. The auctions were conducted by L.M. Auctioneers on August 16.

Confirming the operation, Harare City Council’s head of corporate communications, Mr. Stanley Gama, stated, “We are currently attaching movable properties, but we will extend this to immovable properties later. So far, we have seized property from 60 residents, and there will be a sale in execution.”

The council’s actions align with Sections 279 and 281 of the Urban Councils Act, which empowers local authorities to recover debts through legal proceedings. The Act stipulates that property owners are primarily responsible for paying rates, and, if they fail to comply, councils can serve demands and subsequently seize property if debts remain unpaid.

However, the move has sparked mixed reactions among residents. While some, like Kuwadzana resident Mr. Simbarashe Guvu, have welcomed the council’s action, arguing that residents need to fulfill their obligations, others are concerned about the accuracy of billing. The Harare Residents Trust has pointed out that the council’s enterprise resource planning (ERP) system has been malfunctioning for years, leading to billing based on estimates rather than actual consumption.

“The City of Harare is being led by insensitive, arrogant, and unaccountable people,” said Mr. Precious Shumba, executive director of the Harare Residents Trust. “They have failed to implement a transparent billing system since March 2019. Many bills are inflated, often charging for services that the city is not even providing.”

Despite these concerns, the council continues to push forward with its debt recovery efforts, signaling that more properties, including immovable assets, could soon be targeted.

With a significant portion of its revenue tied up in unpaid debts, the Harare City Council faces immense pressure to balance financial recovery with fair billing practices amidst growing frustration from residents over service delivery issues.