Redcliff Municipality shambolic billing system is a cause for concern

This move was a response to the historically strained relationship between the two parties, exacerbated by woeful service delivery and a perceived lack of accountability.

For the past four years, Redcliff residents have endured life without running water, while refuse collection has been erratic at best.

The town’s roads remain treacherous, resembling a neglected outpost rather than a once-thriving industrial hub.

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The local authority has attributed its service delivery failures to poor revenue collection, claiming that only 18% of residents and corporate entities are paying their municipal bills.

Yet, such claims ring hollow in the face of conspicuous extravagance by council officials.

Reports abound of top management indulging in luxury vehicles, frequenting endless workshops in other towns, and raking in generous Travel and Subsistence (T&S) allowances.

There are also allegations of unjustified salary increments and the transfer of municipal houses into the hands of senior officials.

Despite the municipality’s attempts to dismiss these accusations during my meeting with its top management, they failed to provide any irrefutable evidence to substantiate their denials.

A particularly contentious issue revolved around the alleged debts owed to the council which the local authority attribute to the woeful service delivery.

The municipality asserted that a staggering $16,562,037.00 was outstanding, with Ziscosteel alone said to owe $10,675,839.00.

On learning of this incredible debt supposedly owed by Ziscosteel, I decided to seek comment from the company.

This led to the setting up of a meeting between Ziscosteel management and I to get their side of the story.

In that meeting, Ziscosteel officials vehemently disputed the municipality’s assertions, providing documentary evidence that painted a different picture.

They highlighted shocking rate increments imposed by the local authority that defied all logic and economic rationale.

A letter dated 30 August 2024 revealed that Ziscosteel had requested a meeting with the municipality to seek clarification on these exorbitant charges, particularly an increase of 217% followed by an additional 44%.

Another letter, dated 29 November 2024, exposed a staggering 769% hike in improvement assessment rates in 2021, which had pushed rates far beyond market-related rental values.

The burden of these astronomical charges has left Ziscosteel financially crippled.

The company disclosed that rental arrears accrued since May 2023 have driven it deeper into debt.

In an almost surreal comparison, the company pointed out that the rates imposed on its properties in Redcliff were on par with rental prices in Harare’s Central Business District.

A one-bedroom flat in Harare costs approximately $450 per month to rent, yet Redcliff Municipality was charging the same amount in rates alone.

Despite Ziscosteel’s repeated efforts to engage with the municipality to resolve these concerns, their requests for dialogue have been met with silence.

What makes this situation even more mind-boggling is that these exorbitant charges are in United States dollars, a currency not prone to noticeable depreciation.

A look at historical billing trends further illustrates the municipality’s aggressive approach.

In 2009, Ziscosteel was being charged an average of $98,985.00 per month.

By 2012, this figure had skyrocketed by 217% to $313,940.00.

Fast forward to today, and the company is now expected to pay an eye-watering $451,575.95 following an additional 44% increase.

These figures suggest a deliberate attempt to extract as much revenue as possible from the company, regardless of fairness or feasibility.

Further analysis of municipal billing revealed clear cases of overcharging.

According to Ziscosteel’s documentation, as per the municipality’s own 2022 valuation report, Ziscosteel Works should have been billed $55,723.00 per month.

Instead, the local authority was demanding $318,463.00 per month, creating an overcharge variance of a staggering $261,739.00.

Similar patterns were observed across various Ziscosteel properties, including its mining area, Zisco Club, Zisco Mines Department, Ziam, Impala Grill, Quelo Court, and Redcliff Mansions 1.

A particularly disturbing revelation was that even though Ziscosteel rents out some of these properties, the total rentals collected from tenants are nowhere near sufficient to cover the municipal rates being demanded.

This raises serious questions about the municipality’s billing policies.

Additionally, Ziscosteel highlighted glaring inconsistencies in the municipal bills, where the balance brought forward in a new month’s bill would often be inexplicably higher than the balance from the previous month.

Such anomalies cast doubt on the accuracy and integrity of the municipality’s financial records.

In light of these revelations, Ziscosteel strongly disputes the municipality’s claim that it owes $10,675,839.00.

According to the company’s own calculations, the actual debt should be closer to $2 million.

More troubling still, when the Auditor-General audited the Municipality of Redcliff for the 2023 financial year, the letter sent to Ziscosteel requesting confirmation of its outstanding debt curiously had the amount section left blank.

This raises serious suspicions about why the municipality was reluctant to disclose the figure during an official audit process.

Frustrated by the municipality’s lack of engagement, Ziscosteel ultimately decided to halt rate payments until the dispute is resolved.

Given the severity of the discrepancies, this move appears justified.

Nonetheless, there was one crucial question that kept bothering me throughout this meeting.

Why did it take this long for Ziscosteel management to query the billing?

They responded that the company only started making efforts to resolve the issue after taking back control of its treasury from Kuvimba Mining House in April 2024.

It is deeply concerning that the Municipality of Redcliff seems intent on squeezing one of the town’s most significant corporate stakeholders rather than fostering a cooperative relationship.

Despite ceasing operations over a decade ago, Ziscosteel continues to provide critical infrastructure for Redcliff, including essential water infrastructure, at no cost to the municipality.

It is worth remembering that the town of Redcliff itself was originally constructed and owned by Ziscosteel, which at its peak employed over 5,000 workers.

The company essentially handed over the town to the municipality for free, yet it is now being subjected to what can only be described as punitive billing practices.

This crisis is not unique to Ziscosteel alone.

Many Redcliff residents have also raised concerns over questionable municipal bills, often receiving inexplicably inflated statements that bear little relation to their actual service charges or property values.

The same reckless approach that is being applied to Ziscosteel appears to be affecting ordinary citizens, reinforcing the perception that the local authority is more focused on revenue extraction than genuine service delivery.

What makes this entire situation even more egregious is that while the municipality cries foul over low revenue collection, its own spending habits tell a different story.

Lavish expenditures on luxury vehicles, frequent travel, and seemingly unjustified salary increments for top officials suggest that the financial woes of the municipality are not due to residents failing to pay, but rather to gross mismanagement and misplaced priorities.

The Municipality of Redcliff must take responsibility for its actions and adopt a more transparent and accountable approach to governance.

It cannot continue to hide behind claims of low revenue collection while engaging in questionable financial practices.

The ongoing impasse with Ziscosteel must be resolved through open dialogue, and the local authority should provide clear justifications for its billing methods.

If Redcliff is to thrive, its leadership must recognize that extorting businesses and residents through inflated rates is not a sustainable path forward.

Instead, it should focus on fostering economic revival through fair, transparent, and responsible governance.

• Tendai Ruben Mbofana is a social justice advocate and writer. Please feel free to WhatsApp or Call: +263715667700 | +263782283975, or email: mbofana.tendairuben73@gmail.com, or visit website: https://mbofanatendairuben.news.blog/