Bulawayo City Council dispute company closure figures

BULAWAYO City Council officials have disputed the number of closed firms in the city, saying some of the statistics are based on shelf companies that are not remitting tax to the government.

Official figures from the government indicate that more than 100 firms have in recent years closed shop in Bulawayo rendering thousands jobless.

According to the Southern Eye, the acting city economic development officer, Brian Hlongwane queried methods used to determine the number of closed firms

Hlongwane said the city's development is taking a huge knock due to political and financial challenges.

"Some of the policies by central government are harmful to local authorities," he said.

"All banks headquarters are located in Harare.

"What is even more worrying is the number of closed firms in Bulawayo."

Hlongwane said he tried to query the statistics of the number of firms reportedly closed in Bulawayo and the answer he received was unsatisfactory.

"I once tried to seek information from the Ministry of Industry's Bulawayo office and I was told that they base their calculations on companies that are not paying tax," he said.

"This goes for shelf companies.

"So how do shelf companies constitute closed firms?"

Hlongwane said the rigid centralised decision making in Harare and unpredictable and inconsistent policy pronouncements were also negatively affecting the city.

"The absence of a clear policy on economic development, at both the national and the local level [is affecting development]," he said.

"Capacity utilisation has declined by 3,3% from 2013 to 36,3%.

"The manufacturing sector's contribution to GDP has declined from 25% in the 90s to 12% currently.

"In our case, the effect is that much more profound".