News / Local
Government debt cripples BCC operations
14 Apr 2012 at 11:01hrs | Views
Government departments owe the Bulawayo City Council (BCC) close to $4million in outstanding rates payments dating back from last December.
A report by the BCC Finance and Development Committee shows that various government departments owe the cash strapped council US$3, 953, 337, 89 in rates and services charges.
The BCC Finance and Development Committee report shows that Water Resources Ministry tops the list of government departments indebted to the council as it owes it US$2, 388, 138, 59 followed by the Home Affairs Ministry which owes US$625, 770, 99.
The Ministry of Education, Sport and Culture owes BCC US$ 534, 515, the Ministry of Defence US$ 150, 481, 63, the Ministry of Local Government and National Housing US$116, 219, 79 the Ministry of Health US$120, 330, 38 the Ministry of Labour and Social Welfare US$34, 468, 83, the Ministry of Transport US$7, 544, 56 and CMED US$6392.
The Agriculture Ministry owes council US$1504, 02, the Finance Ministry US$1, 140, 35 and Justice Ministry US$7,73398 and the failure of the government departments to pay has seen interest shoot up to US$ 536 944, 31.
Local authorities do not get government funding during Budget presentations and they survive on rates and services charges.
Bulawayo Deputy Mayor, Amen Mpofu said the refusal of government departments to settle their debts is impacting negatively on council's ability to effectively carry out operations on service delivery.
This comes at a time when BCC is in a fix as it risk losing Tower Block and Revenue Hall over a more than $4 million debt it owes Kingdom Bank.
BCC borrowed the cash to fund several projects with the bulk channeled towards buying state of the art vehicles for senior management and countless services cars.
According to a confidential report council is struggling to service the debt and has begged for 12 month extension to clear it. But the bank is demanding title deeds for both Tower Block and Revenue Hall. But council says it has no clue as to where the documents are kept.
On Thursday evening councillors held an emergency crisis meeting over the matter
A report by the BCC Finance and Development Committee shows that various government departments owe the cash strapped council US$3, 953, 337, 89 in rates and services charges.
The BCC Finance and Development Committee report shows that Water Resources Ministry tops the list of government departments indebted to the council as it owes it US$2, 388, 138, 59 followed by the Home Affairs Ministry which owes US$625, 770, 99.
The Ministry of Education, Sport and Culture owes BCC US$ 534, 515, the Ministry of Defence US$ 150, 481, 63, the Ministry of Local Government and National Housing US$116, 219, 79 the Ministry of Health US$120, 330, 38 the Ministry of Labour and Social Welfare US$34, 468, 83, the Ministry of Transport US$7, 544, 56 and CMED US$6392.
The Agriculture Ministry owes council US$1504, 02, the Finance Ministry US$1, 140, 35 and Justice Ministry US$7,73398 and the failure of the government departments to pay has seen interest shoot up to US$ 536 944, 31.
Local authorities do not get government funding during Budget presentations and they survive on rates and services charges.
Bulawayo Deputy Mayor, Amen Mpofu said the refusal of government departments to settle their debts is impacting negatively on council's ability to effectively carry out operations on service delivery.
This comes at a time when BCC is in a fix as it risk losing Tower Block and Revenue Hall over a more than $4 million debt it owes Kingdom Bank.
BCC borrowed the cash to fund several projects with the bulk channeled towards buying state of the art vehicles for senior management and countless services cars.
According to a confidential report council is struggling to service the debt and has begged for 12 month extension to clear it. But the bank is demanding title deeds for both Tower Block and Revenue Hall. But council says it has no clue as to where the documents are kept.
On Thursday evening councillors held an emergency crisis meeting over the matter
Source - VOP
