News / Local
Council swindling ratepayers through distorted exchange rates
07 Oct 2014 at 06:47hrs | Views
THE BULAWAYO City Council has been accused of swindling ratepayers through the use of distorted exchange rates between the South African rand and the United States dollar, as confusion over cross-rates between the two currencies haunts local businesses.
At the introduction of the multi-currency regime five years ago, the rand was trading at 10 to one US dollar, but recently the South African currency has been depreciating and this has meant people paying in rand have had to pay more for goods and services.
With the rand being the currency of choice in Bulawayo and surrounding areas, local residents feel cheated and some have even threatened to boycott paying their rates if the issue is not solved.
"We feel cheated by the council which is overcharging us by demanding more money if we pay in rands," a Lobengula resident, who requested not to be named said.
"It appears only those who are paying in US dollars are safe from the scandal."
Former Member of Parliament for Magwegwe constituency, Felix Mafa Sibanda, echoed the same sentiments, saying he was a victim of the council's inflated cross-rating when he visited Magwegwe housing offices to pay rates.
"I feel cheated by the council and this means that the residents are cheated on daily basis, that is why they (residents) are not able to clear their arrears because they have to top up where they are not supposed to and they cannot afford," he said.
Mafa Sibanda said when he paid rates using R300, the council official equated R100 to $8,33 contrary to what he saw at a bank, where the same amount was equal to $9,52.
"In Bulawayo people get a lot of their money in rand and it is sad that they get cheated of it through such dubious rating," the former legislator said. Mafa Sibanda said when he queried the discrepancy, a senior officer at Magwegwe said he was not able to address the matter and referred him to senior council management.
"It appears they have a standard rating, which is sustained for the whole year, which means that for the whole year the rate will be R100 to $8,33 despite the changes which occur in the various currencies daily," he said.
Mafa Sibanda said it was sad that though that this was happening, residents might not be aware of it. He said it was worrying to think that the local authority, with 29 councillors, who were elected by the people, did not even notice that their people are being cheated.
"I am challenging people of Bulawayo to protest against this and I appeal to the mayor of Bulawayo to resolve this issue or else we will organise a rates boycott," he said. Contacted for comment, Bulawayo mayor Martin Moyo said the council had no policy on exchange rates and this was dependent on the prevailing rate of the day.
"I think when they open business for the day, they normally use the previous day's rate, but now this could depend on the source of the rate, which I am not quite sure about," he said.
At the introduction of the multi-currency regime five years ago, the rand was trading at 10 to one US dollar, but recently the South African currency has been depreciating and this has meant people paying in rand have had to pay more for goods and services.
With the rand being the currency of choice in Bulawayo and surrounding areas, local residents feel cheated and some have even threatened to boycott paying their rates if the issue is not solved.
"We feel cheated by the council which is overcharging us by demanding more money if we pay in rands," a Lobengula resident, who requested not to be named said.
"It appears only those who are paying in US dollars are safe from the scandal."
Former Member of Parliament for Magwegwe constituency, Felix Mafa Sibanda, echoed the same sentiments, saying he was a victim of the council's inflated cross-rating when he visited Magwegwe housing offices to pay rates.
Mafa Sibanda said when he paid rates using R300, the council official equated R100 to $8,33 contrary to what he saw at a bank, where the same amount was equal to $9,52.
"In Bulawayo people get a lot of their money in rand and it is sad that they get cheated of it through such dubious rating," the former legislator said. Mafa Sibanda said when he queried the discrepancy, a senior officer at Magwegwe said he was not able to address the matter and referred him to senior council management.
"It appears they have a standard rating, which is sustained for the whole year, which means that for the whole year the rate will be R100 to $8,33 despite the changes which occur in the various currencies daily," he said.
Mafa Sibanda said it was sad that though that this was happening, residents might not be aware of it. He said it was worrying to think that the local authority, with 29 councillors, who were elected by the people, did not even notice that their people are being cheated.
"I am challenging people of Bulawayo to protest against this and I appeal to the mayor of Bulawayo to resolve this issue or else we will organise a rates boycott," he said. Contacted for comment, Bulawayo mayor Martin Moyo said the council had no policy on exchange rates and this was dependent on the prevailing rate of the day.
"I think when they open business for the day, they normally use the previous day's rate, but now this could depend on the source of the rate, which I am not quite sure about," he said.
Source - Southern Eye
