New Zimbabwe.com

Redcliff struggles to repay $7 million govt debt seven years on

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By Kwekwe Correspondent


Redcliff Municipality is struggling to service a $1 million debt which was extended to the local authority by government in 2012 to upgrade housing units in its suburbs.

Redcliff Mayor Clayton Masiyatsva said his council was engaging government to find ways on how to repay the long outstanding debt.

The money was disbursed under the Public Sector Investment Programme (PSIP) and was targeted at upgrading rundown housing units in Torwood.

“We are yet to settle the debt which was taken from government through the Public Sector Investment Programme (PSIP).

“We are currently financially hamstrung and we are engaging government to come up with modalities of settling the debt,” Masiyatsva told NewZimbabwe.com in an interview.

Then Redcliff Mayor, Freddy had said after upgrading the substandard homes, council was going to sell them to sitting tenants with the authority then set to realise $13 million profit.

The dilapidated housing units belonged to Ziscosteel and were handed over to Redcliff municipality.

At the time, occupants were still sharing communal toilets, wash rooms and other facilities.

Council, in a bid to standardise them in 2012, borrowed $1 million.

Redcliff had initially targeted to upgrade 800 housing units but only managed 397 homes.

The housing units were built during the colonial period and were mostly semi-detached.