CCC councillors demand US$4,000 vehicle loan

BULAWAYO City Councillors have controversially resolved to receive US$4,000 each in personal loan facilities for the purchase of vehicles - a move that defies a Government directive and comes at a time when the local authority is grappling with significant financial challenges.

During a full council in-committee meeting held last Wednesday, councillors unanimously agreed to convert a Government-sanctioned motorbike loan facility into a cash loan scheme, allowing them to buy cars of their choice instead. The decision could cost the already cash-strapped council US$152,000 in total for all 38 councillors.

The original directive, issued through a Ministerial Circular dated 26 September 2024, mandated local authorities to provide motorbike loans to councillors to enhance their mobility and improve service delivery within their wards. The funds were meant to be used specifically for purchasing motorcycles, with councils responsible for the procurement process.

Ward 15 Councillor Ashton Mhlanga, who moved the motion, proposed that councillors be granted a loan equivalent to the market value of a "fit-for-purpose, decent and roadworthy motorbike" to be repaid over the course of their five-year term. He further suggested that the funds be disbursed as cash directly to councillors, rather than the council procuring the bikes on their behalf.

"The loan shall be repayable within the tenure of the current council term, with clear repayment schedules to be provided to each councillor," read part of Clr Mhlanga's motion. "This cash sum shall reflect the current market value of a motorbike, allowing councillors to independently purchase motorbikes of their choice."

Despite various council departments warning against the proposed changes, citing legal and financial complications, councillors chose to go ahead with the decision - expanding the loan amount to US$4,000 with a six percent annual interest rate, and insisting the funds be deposited into their personal accounts.

The finance department raised red flags about the feasibility of such a loan, noting that the councillors' current allowance of US$75 per month is insufficient to support the proposed repayment structure. Under typical loan conditions, councillors would only qualify for about US$1,125 over five years, before interest.

"There shall be a deemed benefit which is generally taxable as a once-off tax payment and the allowances may not be enough to cover such," the department warned. "Deductions should not be more than 25 percent of the emoluments… translating to a deduction of US$18.75 per month."

The city's chief internal auditor also advised that, if implemented, the loans should be paid directly to a motorcycle dealership - not to individual councillors - in line with the Ministerial guidelines.

However, councillors reportedly insisted they should not be restricted to motorcycles, arguing that vehicles would better serve their needs in discharging duties. According to a councillor who attended the session, "They felt they should be given the right to purchase a vehicle of their choice and not be obligated to the motorcycle."

The resolution now compels city management to write to the Ministry of Local Government and Public Works seeking approval to alter the directive.

Contacted for comment, Ministry spokesperson Mr Gabriel Masvora reiterated that the motorcycle loan facility was strictly intended for mobility support and was not designed as a cash handout.

"Councils are the ones that purchase the motorcycles at one go, then hand them over to the councillors. Councillors are not meant to be getting cash. Even in Parliament, MPs do not get cash disbursements - they receive the vehicles as loans," said Mr Masvora.

He added that the council cannot independently alter a Ministerial directive without prior approval.

"If Bulawayo councillors have resolved to get these cash loan disbursements, they cannot do so without Ministerial approval… but I do not see them altering a Ministerial directive," he said.

The development has raised eyebrows among residents and stakeholders, who view the resolution as tone-deaf amid Bulawayo's ongoing service delivery issues, including water shortages, refuse collection challenges, and deteriorating road infrastructure.