BCC ordered to retrench

GOVERNMENT has finally approved Bulawayo City Council's (BCC) full 2016 budget, but on condition that the local authority effects salary and job cuts to reduce its wage bill.

According to latest minutes of the council finance and development committee, the government's approval of councils' $154 million budget came with several conditions.

Government said council must, among other things, slash salaries and retrench employees, as current employment costs were unsustainable given the local authority's shrinking revenue base.

Part of the minutes read: "However, the approval came with the following conditions; that rationalised salaries are implemented forthwith and remain at the budget approved levels unless authority to amend the budget and given by the minister (Saviour Kasukuwere).

"That council produces a realistic plan to reduce employment costs to acceptable 30:70 ratio by year end and that the 2017 budget is compliant with this ratio. The current level of 55% is unacceptable."

The council budget was approved on August 3, a month after the ministry had only approved BCC's capital expenditure for 2016, but ignored the revenue side.

The minutes said council was also ordered to put in place sustainable payment plans to reduce the levels of statutory obligations, which have risen to high levels, failing which government would refuse to approve its 2017 budget proposal.

"That council manages its creditors so as to minimise them. Council should make every effort to live within its means. That council fully implements its debt recovery strategies so as to reduce debtor levels."

Council said it would soon seek audience with Kasukuwere over the stringent conditions.

The conditions, the ministry said, will provide a guideline for the council 2017 budget preparations. Council normally starts its budget consultations in June, but this year the process has been delayed by government's late approval of the 2016 budget.