Blantyre, Mzuzu collect K933m from rates defaulters

 Blantyre and Mzuzu city councils have collected about K933 million from property owners who defaulted on city rates between July and mid-December 2021.

The collections followed an enforcement exercise the two city councils undertook in November, including sealing properties for non-payments of city rates.

In an interview yesterday, Blantyre City Council director of commerce, trade and industry Denis Chinseu said as of last week, they collected about K820 million from property owners.

He said when the campaign started on October 18 , they had targeted to collect about K700 million, but following the operation, some property owners paid arrears together with current bills.

Said Chinseu: “Billing is continuous. We bill every six months, so what has been happening is because of the campaign, some residents have come forward to pay whatever bills are current.

“So, the K820 million, in this case, is everything that we have collected during this particular period, including current bills. However, in terms of debts, we have collected about K580 million.”

Mzuz u Ci t y Counc i l spokesperson McDonald Gondwe said the campaign has been a success as the council collected about K113 million out of over K1.8 billion it is owed.

He said they instituted various task forces to help enhance revenue collection

 Said Gondwe: “Targeting defaulters, this is the amount [K113 065 000] we would not have collected had it been not for this special push.”

On her part, Lilongwe City Council spokesperson Tamara Chafunya said they have also received positive response from city rates defaulters.

However, she could not disclose how much they have collected out of the K12 billion.

Said Chafunya: “For now, it is not possible to give you a figure. But there is really progress in terms of response, because residents have come forward to pay their arrears.”

When contacted, Zomba City Council investment officer Maurice Banda asked for more time to give update on how much they have collected.

As of October 2021, property owners owed the country’s four city councils K14 billion in unpaid city rates, a development that the councils said was choking service delivery.

The growing arrears forced the councils to engage defaulters both private and government institutions, including sealing their premises.

In the 2020/21 National Budget, all city and district councils projected to collect K6 billion and as at March 31 2021, they have collected K4.3 billion, representing 62 percent of the amount.

Of the projected K6.9 billion locally generated revenue, K27 million is from central government property rates, K2.4 billion income from market establishments, K3.4 billion from fees and service charges, K1.1 billion from licences and permits while K159 million is from other property rates