News / National
'City Council in a critical financial position'
20 Oct 2013 at 04:14hrs | Views
THE Bulawayo City Council (BCC) faces a bleak future as it is in a critical financial position amid revelations that monthly cash collection has since dropped by close to 50 percent. According to a confidential financial services council report, as of August, the council collected $3 840 886, which was a drop from the previous month's $6 030 912.
Since January the local authority has been collecting an average of $6,4 million, which translates to a drop of 59 percent based on current collections.
However, after the ministerial directive to write off domestic debts as at 30 June, which saw the local authority writing off a total of $49 million, the debt owed by domestic users has since ballooned from a zero balance to over $19 million.
The council is currently owed a total of $60 995 856 with domestic debtors owing $19 938 122, industrial and commercial debtors; $34 040 592 and government departments owing $7 017 141.
Before the writing off of domestic bills, government departments owed $6 561 780, industrial and commercial debtors $33 512 342 while domestic debtors owed $60 351 862, this adding to a total of $100 425 984.
While the local authority is owed $60 million, it also owes various departments a total of $78 771 637.
Their biggest obligation is Zesa, to which they owe $36 686 096. They also owe the Local Authorities Pension Fund (LAPF) $24 914 900, $5 837 649 for Pay As You Earn, $3 784 592 for their medical aid facility, $2 399 018 for Trade Creditors, $1 768 123 to various financial institutions, $1 007 867 for the Standard Development Loan and $847 987 in terms of salary obligations.
Other service providers they owe are NSSA ($227 325), Zimbabwe Urban Councils Workers Union ($30 357), Zimdef ($394 144), funeral policies ($791 203) and TelOne ($84 264).
The council's senior public relations officer, Mrs Nesisa Mpofu, noted that with the current trend the local authority could be faced with a crisis hence the need for people to pay their rates as a matter of priority.
"People are encouraged to pay their debts because services have a cost and the money they pay determines the amount of services we can deliver as a local authority. It is our general feeling that after the writing off of domestic bills, it is now more affordable and people should strive to pay what they owe.
"Currently we have the budget consultations that are going on around the city. People should ensure they attend so they have a first-hand knowledge of our plans and where they have grievances they can make them known to the city's leadership," said Mrs Mpofu.
The mayor, Councillor Martin Moyo, said it was unfortunate that people were now lagging behind in terms of bill payment, saying it was essential that people pay and help improve the city's overall service delivery.
"What people must realise is that we also need the money so that we give them services. It is unfortunate that residents are the first to complain when we fail to meet certain obligations but the bottom line is that we also need money to fulfil our given mandate," said Clr Moyo.
Since January the local authority has been collecting an average of $6,4 million, which translates to a drop of 59 percent based on current collections.
However, after the ministerial directive to write off domestic debts as at 30 June, which saw the local authority writing off a total of $49 million, the debt owed by domestic users has since ballooned from a zero balance to over $19 million.
The council is currently owed a total of $60 995 856 with domestic debtors owing $19 938 122, industrial and commercial debtors; $34 040 592 and government departments owing $7 017 141.
Before the writing off of domestic bills, government departments owed $6 561 780, industrial and commercial debtors $33 512 342 while domestic debtors owed $60 351 862, this adding to a total of $100 425 984.
While the local authority is owed $60 million, it also owes various departments a total of $78 771 637.
Their biggest obligation is Zesa, to which they owe $36 686 096. They also owe the Local Authorities Pension Fund (LAPF) $24 914 900, $5 837 649 for Pay As You Earn, $3 784 592 for their medical aid facility, $2 399 018 for Trade Creditors, $1 768 123 to various financial institutions, $1 007 867 for the Standard Development Loan and $847 987 in terms of salary obligations.
Other service providers they owe are NSSA ($227 325), Zimbabwe Urban Councils Workers Union ($30 357), Zimdef ($394 144), funeral policies ($791 203) and TelOne ($84 264).
The council's senior public relations officer, Mrs Nesisa Mpofu, noted that with the current trend the local authority could be faced with a crisis hence the need for people to pay their rates as a matter of priority.
"People are encouraged to pay their debts because services have a cost and the money they pay determines the amount of services we can deliver as a local authority. It is our general feeling that after the writing off of domestic bills, it is now more affordable and people should strive to pay what they owe.
"Currently we have the budget consultations that are going on around the city. People should ensure they attend so they have a first-hand knowledge of our plans and where they have grievances they can make them known to the city's leadership," said Mrs Mpofu.
The mayor, Councillor Martin Moyo, said it was unfortunate that people were now lagging behind in terms of bill payment, saying it was essential that people pay and help improve the city's overall service delivery.
"What people must realise is that we also need the money so that we give them services. It is unfortunate that residents are the first to complain when we fail to meet certain obligations but the bottom line is that we also need money to fulfil our given mandate," said Clr Moyo.
Source - Sunday News
