DEBTS with a number of local authorities in the country will now affect people seeking
credit from various service providers.
The move follows decisions by the councils of Masvingo, Harare and Kwekwe to enter into
partnership with the Financial Clearing Bureau (FCB), a company, which offers credit
clearing services and vetting.
According to the minutes of the Finance and General Purpose Committee, the partnership
between the local authority and FCB was expected to accelerate debt collection as those
debtors, who would want to borrow are required to first settle their outstanding bills with the
local authority.
Masvingo is following in the footsteps of the City of Harare and Kwekwe City Council in
entering into an agreement with FCB.
“It was reported that FCB was a private limited company offering credit clearing services and
vetting. They collected credit data from several entities that provide credit to the public and
issue a credit clearance certificates showing that the prospective borrower has a clean record.
It was reported that partnering FCB would ensure that debtors that want to borrow are
required to clear their council bills first after which FCB would issue out a credit clearance
certificate to the debtor after settlement of the debt for a small fee.”
Meanwhile, the Committee noted with concern the increasing institutional debt and the need
to engage various Government departments to settle their debts.