Councillor Babylon Beta, Masvingo City Council Finance and General Purposes committee chairman, has revealed that Masvingo City Council is writing off debts.
Beta said that the cancellation of outstanding bills is for companies which have evidence of attracting foreign direct investment (FDI).
He said, for a company, to benefit it should produce legally binding proof of foreign direct investment.
According to the latest full council meeting report, councilors permitted the arrangement. Part of the report reads:
City Treasurer Mrs Thandiwe Dube advised council that PG Industries had gone into a scheme of arrangement to attract a foreign investor to resume its operations.
The arrangement was also confirmed by Deputy Mayor Clr Wellington Mahwende. The Clr said:
As local authorities, we can only write off debts under special circumstances like this one where we stand to benefit at the end of the day. The amount of investment that will accrue will cover the debt 100 fold but we continue to encourage defaulting clients to settle their dues.
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More: The Chronicle