Francisca Muringaniza

When we speak of growth and development in the business world, Margolis Holdings has reflected advancements and accomplishments for the past 39 years.

The History behind is unravelled, with astonishing details that will not only be engaging but will motivate businesses that are growing. The detailed events are told first hand by the Owner and Founder of the Holdings, Mr Stephen Margolis.

Margolis Holdings was founded by Stephen Margolis in 1981. The Firm has three subsidiaries with different unique functions, namely:
• Stephen Margolis Resort P/L
• Margolis Trading P/L
• Step Investments P/L

The Organisation was registered on the 13th of February 1981 commencing business in that year with imports of tools and spare parts which were sold to retailors and transport operators.

Subsequently, they got involved in Government tenders in the same line of business, expanding tremendously. They didn’t stop there, but furthered their business into general trading, attracting supplies to Government departments at a bigger scale.

In 1985, the Holdings ventured into its first Real Estate which they subdivided into sectional titles and sold.

“Thereafter, we bought several units of flats selling them on sectional titles, one of which was called “Speke Mansions” at the corner of Harare and Speke Avenue. We reconstructed the building to what is now known as Margolis Plaza which houses several commercial tenants.

The building caters for shops and offices and it is one of the cleanest buildings in town.”…. Mr Margolis said
“We have since then continued earnestly in Real Estate ownership and development until this day”.

In the 90s they ventured into medical supplies resulting in the formation of Margolis Medicals. By that time, Margolis Medicals was involved in theManufacturing of maternity sanitary towels for new mothers across the country supplying almost every Hospital in Zimbabwe.

The Company also represented an International supplier from India supplying vaccines nationally. Mr Margolis introduced Nurse of the year Awards to the Ministry of Health and Child Care, sponsoring Zimbabwe’s best 3 Nurses every year which were
selected by the Ministry itself.

The award Ceremony was attended and presented by the Ministry Health every year. In 2006, they acquired a piece of land which was developed into an Industrial Park in Aspindale
Harare known as “Margolis Industrial Park”.

In 2009, they bought another piece of land in Waterfalls, Harare which they then subdivided into Industrial stands to sell, most of them have been sold and still have several hectares of Industrial stands in this development.

In the centre of this land, they carved out 70 acres on both sides of the Nyarongo River which cuts through their land, thus creating the Stephen Margolis Resort with two
dams in the middle.

“Between then and now, we have acquired several pieces of land within Harare which we are developing into residential stands and gated housing projects”….Mr Margolis

HUMAN rights activist and Habakkuk Trust chief executive Dumisani Nyongolo Nkomo, launched his new book, No Holds Barred, on Friday night at the Joshua Mqabuko Nkomo Museum.

BY SHARON SIBINDI

Nkomo shared his experiences with the police who he said were not keen to give the launch greenlight and said the book was simply about exchanging ideas.

He said there was nothing political about it: “It’s not about Zanu PF or MDC and this country does not belong to any of those. It belongs to God and Zimbabweans. So I was just wondering about an innocent book, why was I being asked so many questions (by the police)? This book is about the exchange of ideas. Let’s exchange ideas. This country will not develop unless ideas are exchanged,” he said.

Nkomo said the book covers a swathe of issues including citizen participation, elections, service delivery, the revival of Bulawayo, devolution and local governance.

“The issue of local governance and devolution; there’s a lot of talk about devolution and somebody said devolution is like a tikoloshi. Everybody talks about it, but nobody has ever seen it. So we should actually describe what will it look like, not what it does not look like,” he said.

Nkomo said the book also had a chapter dedicated to the country’s heroes and the need for debate around the definition of a hero.

“The other chapter looks at service delivery in the Zimbabwean context and also a chapter on Bulawayo. It takes a short snap of Bulawayo (of) 30 to 40 years down the line, what should Bulawayo look like and so on. Lastly, it looks at African problems; we are rich, but poor,” he said.

National Peace and Reconciliation Commission commissioner Leslie Ncube said Nkomo had contributed to the field of knowledge, something which has been lacking in the region.

“We have to contribute significantly in terms of documentation. We acknowledge, as a commission, and we have engaged with you on several structural issues that cut across for peace building,” Ncube said.

Acting mayor Councillor Mlandu Ncube said Nkomo had taken a step of courage to publish the book.

“I have been following some of his writings published by reputable media institutions. I can say his articles are quite intriguing and absorbing,” he said.

“I believe that the thematic approaches outlined in this book add value towards the attainment of a better Bulawayo.”

The launch attracted a multi-racial crowd that included Chief Mathema, David Coltart, Nichola Watson (MDC MP), Thandiwe Nkomo, councillor Silas Chigora, Bulawayo engineer Simela Dube and National Gallery of Zimbabwe (Bulawayo) director Butholezwe Nyathi.

Guest column: Abisha Ndoro

The occupational pension fund industry in Zimbabwe is a national crisis. A collective introspection by industry practitioners, boards of trustees, regulators, policymakers and other stakeholders is now necessary in addressing the myriad of underlying problems and reposition pension funds on a platform of long-term sustainability for future generations of retirees.

The purpose of this, and subsequent articles, is to begin a process of stimulating debate as we examine the problems besetting the pensions system and crystallise thoughts around the appropriate reforms in rejuvenating pensions in Zimbabwe. The problems are clearly deep and complex, ranging from an uncertain and unpredictable operating environment, currency instability, leakages through high expense ratios, ineffective regulatory oversight, ineffective investment strategies and asset write offs in some cases. Thought leadership and a collective effort by all players is now necessary if we are to soberly address the real and very serious problems that are threatening the existence and survival of pension funds as effective vehicles for post-retirement financial provision. This is not about apportioning blame. This is driven by a real and genuine desire to analyse the problems and institute the appropriate structural reforms.

While there is no doubt that the economic misfortunes that have continued to beset Zimbabwe in the last three decades largely contributed to the problem, I firmly believe that there are other serious systemic issues within the pension system that also contributed to the wanton destruction of value in members’ pensions. The sober reality is that we have a generation of pensioners who have retired into abject destitution and realistically very little can be done at this stage. The system has totally failed them. As an industry, we should draw real lessons from the past two decades and begin a process of instituting real reforms and interventions in reinventing the industry and safeguarding future generations of retirees.

So why is the recovery of a vibrant pensions industry so critical that it should not be allowed to fail? Apart from pension funds being effective vehicles for providing old age income security, the pension fund industry is a critical platform for mobilising and generating the nation’s long-term domestic savings. A vibrant and well – functioning pensions system deepens capital markets and strengthens the financial system. Pension funds, by virtue of their long-term investment horizon, are critical drivers of infrastructural development the world over. This is particularly crucial for Zimbabwe where a major policy imperative at this time is around harnessing and mobilising resources for infrastructural development. The critical point, therefore, is that no real long-term economic development is practical without a supportive and vibrant pensions industry.

While indeed the problems besetting pension funds in Zimbabwe over the past two decades are deep and complex, my view is that an important starting point in beginning the processes of unravelling the structural shortcomings of our pension system is to closely examine the investment management within these pension funds, particularly with respect to life assurance company underwritten pension funds.

The primary objective of a pension fund is to ensure the members’ contributions grow in real terms over the long term to afford its members with a pension income they can be expected to live on after retirement. All policy decisions affecting the management and operation of the fund, including the formulation of the fund’s investment policy, risk management and indeed all major decisions taken in connection with the pension fund are informed by this primary objective. Pension fund resources are deployed in various asset classes to ensure that they grow throughout the active working life of a contributing member.

The inherent structure of the Zimbabwe pension system is that the generality of pension funds are arranged through life insurance companies. These are called insurance company underwritten pension funds, or insured Funds. These funding arrangements operate on the basis of the life assurance companies entering into policyholder contractual arrangements with Pension Funds. It is particularly important to fully understand how this structure works. In very simple terms, the life assurance company collects member contributions and pools together all such contributions and other premiums from all its policyholder pension funds and deploys these resources by investing in various instruments, such as property, shares, bonds, among others. On a regular basis, the life insurer reviews the performance of its underlying investment portfolio attributable to its pension portfolio and declares a dividend, known as a bonus to its policyholder pension funds. The pension fund would ordinarily receive a regular statement showing all cash inflows and outflows from its pension fund account, including the final dividend, or bonus declared to the Pension Fund. In reality therefore, the liability of the Life Insurer towards its pension fund policyholder is limited to the cash balances as reflected in the pension fund statement.

The real underlying assets are held in the name of the life assurance company. In practice, variations of this model exist, but is general terms this is the underlying structure.

The contractual arrangement is that should a Pension Fund wish to terminate the contract with the Life Insurer, its obligation will be limited to the cash balances as reflected in the Pension Fund statement. In an unstable and inflationary operating environments as has subsisted in Zimbabwe over the past two decades, these insured Pension Funds whose assets are primarily limited to cash, were totally exposed to the ravages of inflation in the absence of inflation — hedging strategies within these Pension Funds.

Herein lies the problem. Pension Funds whose members directly contributed to the development of all the life insurance owned commercial properties that we see in Harare, Bulawayo and elsewhere, have no legal right of title or direct claim on such real investments. As a result, as the Pension Fund balances plummeted in value, so did members’ emerging pensions.

Insured Pension Funds have their time and place. The stable and low inflation environment of the 1980’s through to the early 1990’s resulted in such underwritten Pension Funds delivering real value to members and retirees. When inflation increasingly became out of control, such structures became totally inappropriate in protecting and safeguarding value. Pension Funds that had direct exposure to property and other real inflation hedging assets fared way better.

Further it can further be argued that the lack of direct ownership and control of underlying assets within these insured arrangements exacerbated the problems associated with the currency conversion exercise in 2009. Indeed, if ownership of real assets by Pension Funds was clear and directly accounted for within each individual Pension Fund, the valuation and conversion process of members’ accrued benefits would have been much more objective and transparent, as this would have involved a simple valuation of an asset from Zim dollar to its US dollar equivalent at the time of currency conversion. I would therefore argue that a general policy shift towards ensuring that Pension Funds own real assets for, and behalf of their members is such a major and crucial step forward in strengthening and reforming the pension system in Zimbabwe.

The industry should now soberly and objectively examine the appropriateness and relevance of the insurance underwritten pension arrangements in the current operative environment, which is still far from certain. I honestly believe that this simple step of ensuring that real assets are under the management and control of the Pension Funds themselves will yield tremendous benefits for the industry and its members. This is an intervention that is, in my view, so necessary in protecting and curbing value destruction within Pension Funds whose members feel, quite rightly, that the system has totally failed them.

 Abisha Ndoro writes in his personal capacity as a pensions consultant having consulted to a number of Pension Funds in Zimbabwe and within the SADC region.

Mankonkoni irrigation scheme chairpeson Kelebone Ndlovu displaying a certificate they won after coming third at the national irrigation schemes competition held in December last year

BY EVERSON MUSHAVA

IT was early February in Mankonkoni area of Gwanda South, Matabeleland South. The sun was unrelentingly hot. All around into the yonder horizon there was hardly any sign that the village had received a heavy downpour just a week before. With temperatures hovering above 33 °C the roads were so sun-baked that a thick cloud of dust rose behind our vehicle as it negotiated its way to Mankonkoni Irrigation Scheme along Shashe River which marks the Zimbabwe-Botswana border.

Lying in the ecological region five in the south westrern part of Zimbabwe, where erratic and sparsely distributed rainfall scarcely exceeds 650mm per year, Gwanda district and most parts of Matabeleland perennially experience food shortages.

But for the Mankonkoni community, the sun, which has for a long time been the biggest source of their misery, has become their new-found source of relief and hope.

The community is shaking off its vulnerability, thanks to the Mashaba solar mini-grid implemented by a group of non-governmental organisations with Practical Action as the lead partner and supported by SNV Netherlands Development Organisation, Hivos and the Dabane Trust.

The solar power initiative is part of a four-year €7,1 million project in Zimbabwe and Malawi under the European Development Fund (EDF). The EDF is a conduit for European Union (EU) aid for development cooperation in Africa, the Caribbean and Pacific (ACP Group) countries.

Funded to the tune of €2,7 million to help the community mitigate the effects of drought, the Mankonkoni Irrigation Scheme, now powered from the solar mini-grid has opened a new chapter for the once hapless villagers.

The irrigation project was on its knees a decade ago, but was resurrected in 2017 when solar-powered irrigation started and in the last three years the project has written its own piece of history by scooping the third national prize in the 2019 national irrigation schemes competition, beating many irrigation schemes from ecological regions favoured with abundant rainfall.

The 30-member irrigation scheme will now walk away with $20 000 from the December 2019 competition after they also scooped the first prize in Gwanda district and second position in the province.

Kraal head Lydia Ncube displaying the award won by Mankonkoni irrigation scheme in Gwanda South recently

Insukamini Irrigation Scheme in Vungu district in the Midlands province scooped the first prize, with Siyaleme in Bindura in Mashonaland Central province coming second.

“We are very excited about the award,” said Kelebone Ndlovu, chairperson of Mankonkoni Irrigation Scheme. which now stands out majestically as a mesmerising green patch at the midst of a desert, courtesy of the solar irrigation project.

“This could have never been successful without the support of Practical Action and EU, our donor. Before the solar electricity, we used generators which were expensive to run considering the shortage of fuel in the country.”

The irrigation scheme competition, sponsored by the government every year, looks into production levels, water and soil husbandry, management, record keeping as well as infrastructure maintenance.

Also assessed is how the irrigation scheme markets its produce, health and hygiene as well relations between the farmers and the community.

Lydia Ncube, a kraal head and member of the irrigation scheme, said with improved access to renewable energy, knowledge from agriculture extension workers as well as inputs from government, the irrigation scheme has the potential of sustaining the entire community comprising about 3 000 households.

“Better and increased access to cheap solar power can sustain us that is if we get inputs from government, I am sure we have the capacity to sustain the whole community which has two traditional leaders,” Ncube said.

However, other members of the irrigation scheme appealed to Practical Action to set up a solar project exclusively for the irrigation scheme so that they improve on their irrigation capacity.

Currently, the 99KW Mashaba solar mini-grid, the first in the country, is benefitting three irrigation schemes: Mankonkoni, Sebasa, Rustlers’ Gorge as well as Mashaba Clinic and primary school, Mashaba and Msendami business centres, and over 2 800 households spanning a 25km radius.

“We cannot do irrigation during the night because the power will be servicing other people like business centres. If we have our own source of solar power, we will be able to do irrigation for 24 hours and improve on our production,” one member said.

Practical Action communications specialist Innocent Katsande said the fact that Mankonkoni Irrigation Scheme had won a prize for its efforts shows that solar energy is very crucial for the revival of irrigation schemes across the country, especially in drought -prone regions.

“This shows that with the use of solar energy, the country can revive agricultural irrigation and improve national food security in the face of climate change,” Katsande said.

Practical Action is also supporting Silikwe Irrigation Scheme in Gwanda under the Enhanced Agricultural Productivity and Resilience to Climate Change through Solar Powered Irrigation (REAP).

The Silikwe project is funded to the tune of US$2,3 million from the Swedish embassy via the Swedish International Development Cooperation Agency (Sida).

“This investment shows how solar energy can power agricultural productivity and secure livelihoods of smallholder farmers,” Katsande said.

“For the first time in over 10 years, farmers at Silikwe have been able, not only to harvest twice in a single season, but will also be able to grow a variety of crops all year round.”
Melina Moyo, the secretary for Silikwe Irrigation Scheme said: “We now have a livelihood, this is a dry region and this solar-powered irrigation scheme has transformed our lives.”

The project has thriving maize, water melon and sugar beans after harvesting their first maize crop a month ago from a region that has been forced to switch to small grains as the effects of climate change continue to gnaw their maize harvests.

Solar-powered irrigation is also transforming livelihoods in Matobo where Fambidzanai Permaculture Centre, a local non-governmental organisation, has established some solar powered agro-ecological gardens benefitting about 250 households in the drought-prone region.

The Matobo projects are funded to the tune of US$1,3 million by the Isle of Man government.

Two successive droughts have forced Zimbabwe to rely on food handouts and more than seven million are currently in desperate need of food aid, according to Finance minister Mthuli Ncube. The United Nations is already appealing to the global community to support Zimbabwe’s food aid programme.

Making matters worse is an ailing economy characterised by hyperinflation and shortage of basic goods at a time the majority of workers are earning sub-economic salaries.

Solar-powered irrigation schemes in a country with an abundance of sunshine like Zimbabwe can be the panacea to improved food security. In other countries like Rwanda, solar-powered irrigation has transformed livelihoods where farming is the backbone of the economy, employing about 79% of the population.

Mbonisi Dube, an agriculture extension worker at Silikwe Irrigation Scheme, said with more solar-powered irrigation projects, Zimbabwe can go back to its breadbasket status, notwithstanding the effects of climate change.

Zimbabwe was the breadbasket of Sadc in the 1980s, before recurrent droughts and the chaotic land reform programmes reduced it to a basket case, now depending on food imports and donor support.

By Garikai Mafirakureva

Chiredzi South legislator Kalisto Gwanetsa last week called a meeting with all school heads in his constituency after it recorded poor results during the 2019 Grade 7, Ordinary Level and Advance Level Zimsec examinations.

Most of the schools performed dismally with some posting a 0% pass rate while others got 2% or 3%.

The meeting, held at Mhlanguleni Primary School, which was attended by all school heads, their deputies and school development committee (SDC) chairpersons, was meant to identify problems affecting schools and map the way forward.

Gwanetsa, however, maintained that no school in his constituency should record a 0% pass rate.

“I have called this meeting because I am not happy with last year’s results. I know things are difficult economically, but our results are pathetic. We have room to improve. We should be seen putting more effort to improve our pass rate.

“No school head should justify poor results because elsewhere schools are performing quite well,” he said.

The heads lamented lack of textbooks, under-staffing and a shortage of Shangani teachers as some of the challenges leading to poor performance.

Former Matabeleland North district schools inspector (DSI) Lackson Zanamwe, who hails from Chiredzi South, bemoaned the deteriorating educational standards.

“My heart bleeds when I compare the current results and yesteryear’s performance. Chiredzi South is now a pale shadow of itself. Gone are the days when we used to boast of pupils who did well from our area. During my time here as a teacher we produced the best, including the first Shangani doctor.

“The late Francis Majoko, who was a gynaecologist, passed through a school in our locality. As teachers, at times you have to improvise because it is obvious you are working with limited resources. I urge everyone here to go back and up the effort so that we can achieve our goal,” Zanamwe said.

Chiredzi district schools inspector Petronella Nyangwe, however, said the Primary and Secondary Education ministry was working closely with schools around the area to improve the pass rate.

She added that most teachers were not willing to work in Chiredzi because of various reasons, including weather and its geographical location, resulting in many seeking transfer, leading to a shortage of teachers.

Guest column: Paidamoyo Muzulu

THE urge to be a member of a group is strong for some people, even if they are not suitable or ready for the membership. Zimbabwe, despite its struggling economy, has committed itself to join the African Continental Free Trade Area (AfCFTA), President Emmerson Mnangagwa announced at the weekend.

The AfCFTA, an intra-Africa trade agreement, was born on May 30, 2019, when 22 member States ratified the treaty. It has a potential market of 1,2 billion people and the potential to generate trade worth a whooping US$2,5 trillion annually.

This is a development likely to spur economic growth on the continent that for a long time has been seen as a market for the developed world.

Its potential has never been in doubt, with all big powers — United States, Russia, China, Japan and the European Union – over the years holding their own business summits.
It is interesting that these powers have and still treat Africa (54 States) as if it were a single country.

The continent’s diversity and plurality has not been an impediment, probably because most of the countries rely on commodities for trade.

Very few African countries (South Africa as an exception) trade in finished products like cars, ammunition and textiles.

In joining AfCFTA, Mnangagwa said: “We are also aware that challenges relating to implementation modalities will need to be addressed if we are to achieve the desired outcomes.

“Subsequently, however, in the spirit of moving forward and our commitment to the principles that inspired the establishment of the AfCTA, we are prepared to move on the basis of the agreed collective position. Therefore, Zimbabwe is now on board.”

This development comes before Zimbabwe stakeholders (industrialists, labour unions, farmers, financial services) have had indepth discussions on what joining AfCFTA means in reality.
Looking at Zimbabwe’s exports and imports in the past decade, one cannot miss the fact that the country imports more than it exports.

It would be fair enough to suggest that joining the free trade area is a gamble whose time had not arrived.

The country at the moment has one advantage – a weak currency — but that is not sufficient to spur the country’s economic growth because it does not have basic economic drivers such as electricity, water, roads and human resources.

The cost of production is still too high to be competitive in Sadc region, let alone the continent.

Mnangagwa was right last year when he said Zimbabwe needed 15 years to industrialise and potentially compete on the continental stage.

South Africa and Rwanda have been making themselves competitive in the past decade and are ready to derive benefits of a free trade agreement.

The duo has been ready from day one to export unique products into the free trade area and increase their footprint across the continent.

Looking into the crystal ball, one can see that Zimbabwe will become one large supermarket for goods and services from countries that are ready.

For instance, the South African motor and manufacturing industries will flood their goods on the continent, including Zimbabwe.

They can do this easily with a relatively weaker rand, modern industries and a sophisticated financial services sector.

At the moment, Zimbabwe basically imports all the basic commodities from her neighbours, which has made it difficult for the local industries to bounce back, especially without any protection when the free trade rules kick-in.

Disappointingly, Mnangagwa at the AU summit only saw the sanctions as the impediment to the country’s economic growth and was contend with the continent’s political solidarity to have the sanctions removed.

“What is required is: When are they (sanctions) going to be removed? How long will they (Western countries) continue to have sanctions on us? Fortunately, the continent as well as our region are with us in the fight to have sanctions removed,” he said.

It never occurred to him that Zimbabwe has been surviving on huge budget deficits, a monostrous foreign debt, inefficient industries, poor financial services, a demotivated labourforce, collapsed energy sector and road infrastructure and a comatose public service.

Can Parliament save Zimbabwe from the potential economic mess Mnangagwa has plunged the country into? This could be asking too much from Zanu PF MPs who for 40 years have known and internalised one lesson — the leader is always correct.

It would not be shocking that by the end of the year the free trade agreement would be ratified, condemning the country to a supermarket economy from where it will never rise from.

For now, the ED choir will sing hoarse celebrating the membership into the esteemed free trade organisation despite that Zimbabwe will be nowhere near an associate member position to this body.

The crocodile can for sometime submerge in the water, but how long will it take before it wants to have some air?

Paidamoyo Muzulu is a journalist and writes here in his personal capacity.

Editorial Comment

THE public admission by Prosecutor-General Kumbirai Hodzi that corrupt cartels have captured key government institutions including the police and judiciary demonstrates that as long as the fight against graft is not taken beyond lip service by critical stakeholders, we may as well be fighting a losing battle as a country.

The public looks up to the police and judiciary to stem out corruption, but if these, as well as the National Prosecuting Authority itself are compromised, then we are doomed.

There has been a lot of noise about the growing sophistication of cartels responsible for most of the high-level corruption. The fact that these cartels have been allowed to flourish is clear proof that President Emmerson Mnangagwa’s administration is not serious about fighting corruption, especially considering that those who have been linked to the cartels are deeply embedded in government and the ruling Zanu PF party.

Fuel mogul Billy Rautenbach, in particular, has not added much value to economic development through his Chisumbanje Green Fuels ethanol project, while having Sakunda boss Kudakwashe Tagwirei in sole control of the fuel pipeline has created an unhealthy monopoly that is bleeding the country dry.

What is frightening is the revelation that these cartels now cut across all public institutions including the media and legal professions. Quite clearly, graft will remain endemic as government has not shown a serious appetite to fight it, perhaps because many of its key principals are also feeding from its troughs.

Given Hodzi’s position, his revelations that the cartels are so well organised that they frustrate investigations into their corrupt deals should be a call for citizens to demand more accountability and transparency from government. With corruption having significantly contributed to the country’s economic malaise, these issues should be urgently attended to, otherwise government institutions will continue to lose public confidence.

Government cannot remain silent following these serious accusations as they are an indictment on its modus operandi. Unless serious, urgent action is taken, the situation will likely deteriorate to a stage whereby the country will become synonymous with corruption.

It is heartening that Hodzi promised that his authority will be prosecuting corruption in a very aggressive and robust manner, but our prayer is that he will get the necessary support from the relevant government institutions. Otherwise, he may end up fighting a lone battle that he would not be able to win.

BY NQOBANI NDLOVU

BULAWAYO City Council (BCC) has unveiled a credit control and debt collection policy that seeks to maintain predictable cashflows and allow for improved management of debtors, among others.

Council is owed about $221 million as of December 2019 broken down to $100 million by domestic debtors, $44 million by government, industry and commerce $72 million and $5 million by parastatals.

Council argues that failure by its debtors to clear outstanding payments is affecting its ability to provide efficient services and clear its debts with various creditors.

The local authority owes various creditors $256 794 852 for the month of January, up from $223 440 579 in December.

The policy does not spare even BCC staff and councillors as it insists on forced deductions from their salaries if they have outstanding bills.

“Any person receiving a salary or allowances from the city may not be in arrears to the city for rates and consumer service charges for a period longer than three months (unless suitable arrangements have been made for the payment of arrears) and council may deduct any outstanding amounts from the person’s salary after this period,” the 25-paged document read.

“The city shall liaise with the relevant persons referred to in 59 above and their departmental representatives and issue the necessary salary deduction instruction where appropriate after compliance with the provisions of the Labour Relations Act.”

Council has been operating without a documented credit control and debt collection policy. It has been relying on resolutions, the Urban Councils Act, the water and sewage by-laws and other pieces of legislation.

“The FD (finance director) shall be the implementing authority: (a) implement and enforce the city’s credit control and debt collection policy and any by-laws enacted in terms of the Urban Councils Act;

“(b) In accordance with the credit control and debt collection policy and any such by-laws establish effective administrative mechanisms, processes and procedures to collect money that is due and payable to the city,” it adds.