BCC still violating Govt directive on salaries

THE Bulawayo City Council is still in violation of the Government's directive to set the service delivery to salaries ratio at 70:30.

In its recommendations to the city council after approving the city's $152 million budget for this year, the Ministry of Local Government, Public Works and National Housing said the municipality had failed to comply with the directive for the past three years.

According to the latest council minutes, the city council's financial services director Mr Kimpton Ndimande reported that the Ministry had informed council on January 9 that its budget had been approved.

He however said Government had directed council to address the service to salaries ratio issue as well as ensure that audits are up to date.

Government also said council should come up with strategies to increase revenue collection.

"The Bulawayo City Council is advised to proffer realistic strategies to reduce employment costs to the acceptable 70:30 service delivery and salaries ratio.

Council has for the past three years failed to comply with Government directive on the ratio because its proposed strategies to address the issue have not been implemented. On this note, realistic strategies are required and the ministry shall make follow ups on the implementation of the strategies," reads the Ministry's recommendations.

It said in terms of audits, council has over the years been reminded to ensure that audits are up to date through budget letters but no progress has been registered as shown by the backlog in audited accounts, which is a serious corporate governance matter.

"A proactive approach is required in this regard to ensure compliance with the Public Finance and Management Act," said the Ministry.

The city council was also urged to come up with new mechanisms of revenue collection which include engagement of ratepayers to honour their bills and installation of prepaid water meters.

"The scenario where creditors exceed debtors has negative implications on the budget as monies recouped will not be sufficient to clear obligations hence there is a need for intensive revenue collection backed by employment of sustainable mechanisms," said the Ministry.

"Since 2016, council has been reminded to fully implement debt recovery strategies to reduce level of debtors. Over and above, council is instructed to implement all tabled strategies to liquidate creditors and statutory obligations, as well as reduce employment costs to meet the required 70:30 service delivery to salaries ratio."

The city council last year submitted its 2018 budget with no tariff increases in a bid to ease pressure on rate-payers.

The proposed budget decreased from the 2017 budget, which was pegged at $153 million.

The local authority has for the third year running, settled for a standstill budget after realising that rate-payers are struggling to pay rates and service charges.