Property owners owe cities K14 billion
Property owners owe the country’s four city councils a whopping K14 billion in unpaid city rates, a development that is choking service delivery and pushed some of the councils to pounce on defaulters this week.
In separate interviews yesterday, city council officials in Blantyre, Zomba, Lilongwe and Mzuzu conceded that while they are trying their best to collect the rates, property owners have not been forthcoming in settling their arrears.
In the capital city, private and government institutions owe Lilongwe City Council (LCC) up to K12 billion.
LCC spokesperson Tamara Chafunya yesterday said: “The property rates balance as of September 31 2021 is K12 836 913 867.27.”
On his part, Lilongwe City Council chief executive officer (CEO) John Chome said if engagement fails, the council usually takes rates defaulters to court.
He said in cases where property owners have stayed three years without making payments, the council seizes and auctions the property.
Said Chome: “We have many cases in court relating to seizure and auctioning of property to recover the arrears.
“But we also close premises for non-payment, after we have warned the people and given them a deadline to pay. If they don’t respond, we proceed to close.”
Blantyre City Council (BCC), which was owed about K600 million, on Monday this week launched a recovery exercise and recovered about K320 million by yesterday after sealing some property, according to the council’s director of commerce, trade and industry Denis Chinseu.
He said about K280 million still remains uncollected.
In Mzuzu, the council spokesperson McDonald Gondwe yesterday said they are owed in excess of K1.8 billion.
He said: “About K1.8 billion remains in city rates, that’s what people owe us. We are following up on what we have been announcing that prior to a new financial year, we are supposed to remind property owners and we did that through various avenues. We also reminded them through rate demand notices.”
In a drive to enforce payment of the arrears, Mzuzu City Council also sealed some properties, including Mzuzu University (Mzuni) which owes it K23 million.
But Mzuni registrar Yonamu Ngwira later yesterday communicated to staff that the institution reopened by midday.
Zomba City Council CEO Fred Nankuyu said the debt is running into “millions of kwacha”.
He said the council is using several ways to get its dues, including conducting door-to-door collections.
Nankuyu said: “We have been using door-to-door collection of money and what we have done so far is to issue reminders to rate payers.
“Most of them have started responding. I may not know the whole figures, but it’s in millions of kwacha.”
Reacting to the developments, Malawi Local Government Association (Malga) acting executive director Hadrod Mkandawire in an interview yesterday said it is unfortunate that the central government was also in the forefront choking councils in payment of property and city rates.
He said the central government does not pay according to what has been invoiced yet it is supposed to be exemplary.
Said Mkandawire: “The legal framework does not favour the city councils when it comes to enforce payment of the rates.
“The Local Government Act says the councils can seal such properties only after two years, meaning within a particular year, the councils will be tied.”
He said the situation affects services and development delivery as they are not being met.
In the 2020/21 National Budget, all city and district councils projected to collect K6 billion and as at March 31 2021, they had 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
