Bulawayo City Council Debt Rises
Published: 2016 May 10 11:03:03 (4431 Views)
The Bulawayo City Council is laden with dept with revelations that it has increased by 3% to $122 million as at the end of March 31, as council continues to acquire goods and services on credit while there is a backlog in payments for services received, latest council minutes have shown.
According to the minutes, council owed statutory bodies such as the National Social Security Authority, Municipal Provident Fund and the Zimbabwe Manpower Development Fund about $45 million as at March 31. It also owed about $63 million to TelOne, Zinwa and Zesa.
The council also owed workers $7 million in outstanding salaries, while unpaid taxes had increased to $2 million. Financial institutions were owed $3 million.
The council owed trade creditors an amount of $2 million. In addition to the $122 million municipal debt, the council was also owed $124 million and $4,3 million by residents and government respectively.
The council said an amount of $1,3 million, which was agreed to be offset with the ministry of Finance in lieu of pay as you earn incurred in 2015, was yet to be credited to the government accounts.
Recently, BCC proposed a flat 2016 budget of $154 million with no tariff increases.
The council said cash collections for the month of March 2016 showed a slight increase of 0,42% compared to the previous year’s collections in the same month, an indication there was need to intensify on collections.
In the same month, council said payments of $5,7 million were made to various service providers and $180 000 was appropriated to the pipeline levy resulting in a surplus of $431 898.
It added that payments made in the month of March 2016 decreased by 3,34% in comparison with the same period last year, that is, from $5,9 million in March 2015 to $5,7 million in March 2016.
Total salary payments in the month of March 2016 amounted to $ 2,3 million.
Accrued income to the month of March 2016 amounted to $24 million compared to the partial budget of $27 million, giving an unfavourable variance of $2,7 million.
The causes of the income variance were due to rates, rent and supplementary charges- there was less income because some properties have not been serviced yet, hence, rates charges are not yet collectable. Licence and fees - some business licences for year 2016 were renewed in year 2015, miscellaneous cash sales.
Expenditure has remained subdued because of the cash flow constraints, it noted.
BCC lost $47 million in 2013 after government directed all municipalities to cancel domestic water bills and property taxes incurred by households between February 2009 and June 2013, citing a difficult economic environment that made it difficult for households to pay.
The directive, according to council’s finance and development committee chairperson James Sithole, crippled BCC.
- News Day
According to the minutes, council owed statutory bodies such as the National Social Security Authority, Municipal Provident Fund and the Zimbabwe Manpower Development Fund about $45 million as at March 31. It also owed about $63 million to TelOne, Zinwa and Zesa.
The council also owed workers $7 million in outstanding salaries, while unpaid taxes had increased to $2 million. Financial institutions were owed $3 million.
The council owed trade creditors an amount of $2 million. In addition to the $122 million municipal debt, the council was also owed $124 million and $4,3 million by residents and government respectively.
The council said an amount of $1,3 million, which was agreed to be offset with the ministry of Finance in lieu of pay as you earn incurred in 2015, was yet to be credited to the government accounts.
Recently, BCC proposed a flat 2016 budget of $154 million with no tariff increases.
The council said cash collections for the month of March 2016 showed a slight increase of 0,42% compared to the previous year’s collections in the same month, an indication there was need to intensify on collections.
In the same month, council said payments of $5,7 million were made to various service providers and $180 000 was appropriated to the pipeline levy resulting in a surplus of $431 898.
It added that payments made in the month of March 2016 decreased by 3,34% in comparison with the same period last year, that is, from $5,9 million in March 2015 to $5,7 million in March 2016.
Total salary payments in the month of March 2016 amounted to $ 2,3 million.
Accrued income to the month of March 2016 amounted to $24 million compared to the partial budget of $27 million, giving an unfavourable variance of $2,7 million.
The causes of the income variance were due to rates, rent and supplementary charges- there was less income because some properties have not been serviced yet, hence, rates charges are not yet collectable. Licence and fees - some business licences for year 2016 were renewed in year 2015, miscellaneous cash sales.
Expenditure has remained subdued because of the cash flow constraints, it noted.
BCC lost $47 million in 2013 after government directed all municipalities to cancel domestic water bills and property taxes incurred by households between February 2009 and June 2013, citing a difficult economic environment that made it difficult for households to pay.
The directive, according to council’s finance and development committee chairperson James Sithole, crippled BCC.
- News Day
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