News / National
BCC debt races to $174 million
18 Apr 2018 at 06:59hrs | Views
BULAWAYO City Council (BCC)'s debt has ballooned to $174 million as of February this year as the local authority is struggling to service it, owing to the decline in revenue collections, latest council minutes have shown.
According to the council minutes, as at February 28, 2018, BCC's debt stood at $174 million, as the local authority council continues to acquire goods and services on credit.
At the beginning of February, the debt stood at $169,4m and it increased by 3% to $173,6m at the end of the month.
Council owes statutory bodies such as National Social Security Authority, Zimbabwe Manpower Development Fund, Local Authorities Pension Fund, Zimbabwe Urban Councils Workers Union, funeral policies, among others about $49,9m.
The local authority owes Zesa Holdings about $94,2m, while on the other hand, Zesa owes council $94,4m.
Council is billing Zesa $860 284 as royalty charges per month. As at February 28, 2018 the royalty bill stood at $94 380 411, exclusive of interest charges.
The municipality also owes workers $4,99m in outstanding salaries and allowances, while unpaid taxes have increased to $4,9m.
Financial institutions are owed $18,1m, including the Infrastructure Development Bank of Zimbabwe debt.
It also owes trade creditors and utilities $1,51m.
The council is owed $176,1m by residents. Government on the other hand owes $6,22m.
Council said for the month of February, $3,2m (58% of the total receipts from billed accounts) was received from domestic ratepayers whilst $2,3m (48% of the total receipts from billed accounts) was from non-domestic ratepayers.
Cash collections for the month of February 2018 increased by 13,02% when compared to year 2017 February figures.
The comparison for the month January 2018 to February 2018 reflects a decrease of 11,42% in the cash collection, it said.
According to the council minutes, as at February 28, 2018, BCC's debt stood at $174 million, as the local authority council continues to acquire goods and services on credit.
At the beginning of February, the debt stood at $169,4m and it increased by 3% to $173,6m at the end of the month.
Council owes statutory bodies such as National Social Security Authority, Zimbabwe Manpower Development Fund, Local Authorities Pension Fund, Zimbabwe Urban Councils Workers Union, funeral policies, among others about $49,9m.
The local authority owes Zesa Holdings about $94,2m, while on the other hand, Zesa owes council $94,4m.
Council is billing Zesa $860 284 as royalty charges per month. As at February 28, 2018 the royalty bill stood at $94 380 411, exclusive of interest charges.
Financial institutions are owed $18,1m, including the Infrastructure Development Bank of Zimbabwe debt.
It also owes trade creditors and utilities $1,51m.
The council is owed $176,1m by residents. Government on the other hand owes $6,22m.
Council said for the month of February, $3,2m (58% of the total receipts from billed accounts) was received from domestic ratepayers whilst $2,3m (48% of the total receipts from billed accounts) was from non-domestic ratepayers.
Cash collections for the month of February 2018 increased by 13,02% when compared to year 2017 February figures.
The comparison for the month January 2018 to February 2018 reflects a decrease of 11,42% in the cash collection, it said.
Source - newsday
