News / Local
Council's revenue decline 60% to $3 million per month
06 Oct 2013 at 09:09hrs | Views
BULAWAYO City Council (BCC)'s monthly revenue has gone down by about 60%, following the directive by government to local authorities to cancel debts owed by residents, the Standard reported.
Bulawayo mayor Martin Moyo said the city's revenue had gone down to $3 million from $7 million per month as residents were now hesitant to settle their bills.
Just before the July 31 harmonised election, Local Government minister, Ignatius Chombo ordered all local authorities to scratch off outstanding debts from ratepayers dating back February 2009, a move that some observers say was politically motivated.
"Revenue has not been flowing to the council as had been the case. The issue of cancellation of debts has had negative effects on the council revenue," said Moyo.
Moyo said due to poor revenue collection, the city was struggling to deliver quality service to residents due to financial constraints.
"The poor revenue is affecting service delivery and that has also delayed in the rehabilitation of roads," said Moyo.
He also bemoaned that several government departments owed the city council millions of dollars in unpaid bills.
"Government departments owe us a lot of money. Sometimes they pay but sometimes they don't," said Moyo.
Bulawayo mayor Martin Moyo said the city's revenue had gone down to $3 million from $7 million per month as residents were now hesitant to settle their bills.
Just before the July 31 harmonised election, Local Government minister, Ignatius Chombo ordered all local authorities to scratch off outstanding debts from ratepayers dating back February 2009, a move that some observers say was politically motivated.
"Revenue has not been flowing to the council as had been the case. The issue of cancellation of debts has had negative effects on the council revenue," said Moyo.
"The poor revenue is affecting service delivery and that has also delayed in the rehabilitation of roads," said Moyo.
He also bemoaned that several government departments owed the city council millions of dollars in unpaid bills.
"Government departments owe us a lot of money. Sometimes they pay but sometimes they don't," said Moyo.
Source - thestandard