Online Reporter
Sikhumbuzo Moyo, [email protected]
THE City of Bulawayo Special Budget Committee has failed to meet the one-week ultimatum set by the Minister of State for Provincial Affairs and Devolution, Judith Ncube, to resolve the 2025 budget impasse.
Minister Ncube issued the ultimatum during a high-level meeting on 7 March 2025, which was also attended by members of the Joint Operations Command (JOC).
Acting Bulawayo permanent secretary for Provincial Affairs and Devolution, Mr Simon Sawunyama, stated that Minister Ncube will be briefed on the latest developments once she returns to office today.
“The impasse is still ongoing; the two parties have again failed to reach an agreement, leaving the city without a budget going into the second quarter, which is a worrying situation,” he said. “What we will do is brief the minister once she returns to the office tomorrow (today). She is the one who will give a directive on the way forward,” said Mr Sawunyama.
Following a directive late last year from the Chief Secretary in the Office of the President and Cabinet (OPC), Dr Martin Rushwaya, that the Ministry of Local Government and Public Works should not approve the council’s US$309 million 2025 budget due to glaring anomalies in its formulation, the ministry set up a special budget committee. This committee, which includes council representatives, members of the business community (as represented by the Confederation of Zimbabwe Industries – Matabeleland Chapter, and the Zimbabwe National Chamber of Commerce), all three registered residents’ associations, tertiary institutions, and tourism stakeholders, was tasked with revising the 2025 budget based on the 2017 audited figures.
However, sharp differences emerged between the council and the stakeholders after a request for the council to disclose its salary bill was met with stiff resistance from its representatives on the special budget committee.
The impasse led to the two parties eventually going their separate ways, with the council calling for a special meeting, which resolved to cut business shop licences and sports and social club tariffs by 30%.
The special council meeting also resolved to resubmit the now revised budget for approval, but this was subsequently rejected.
The city council, however, cited clauses in the Cyber and Data Protection Act as the reason for not disclosing salary perks for senior management to the special budget committee.
The business community has argued that the resolution to reduce the fees, reached at the special council meeting on the 2025 budget and tariff reductions, was made without councillors being fully informed about the objections raised by stakeholders. One example is the proposed 104% increase in labour costs for council staff, from US$53 million in 2017 to US$108 million in the 2025 budget.
Meanwhile, members of the special budget committee have urged the Bulawayo City Council (BCC) to communicate honestly with stakeholders, warning that unless the council is transparent, there will be no resolution to the problem and stakeholders will not trust council officers.
“We urge the City of Bulawayo management and councillors to reconsider their approach and engage in good faith and meaningful consultations with stakeholders to resolve this impasse. It is essential that the council cooperates with its collective stakeholders to ensure a fair, affordable, and sustainable budget and tariffs that benefit all stakeholders. We also urge the council to be transparent with stakeholders and to address waste and inefficiencies in its operations,” reads a statement from the committee, which was released last Friday.
The committee stated that it is the considered view of stakeholders that the impasse should be resolved soon using the framework agreed upon with officials from the Ministry of Local Government and Public Works and stakeholders.
“We note with concern that the council is attempting to deepen its cover-up of inefficiencies by making comparisons of tariff levels with those in other cities. This comparison is flawed, as cities in this country have different economies. The comparison is too simplistic,” said the committee.
“There is no corresponding comparison of incomes. Bulawayo was built as the industrial capital of the country, and the closure of many manufacturers has significantly impacted its overall economy, reducing its size and aggregate consumption. The local economy is characterised by low formal employment as a result.”
Bulawayo is the only local authority that has not had its budget approved after ratepayers raised concerns about its 2025 budget. Ratepayers have questioned the city’s figures, which they claim result from incorrect calculations stemming from the council using the wrong formula to index the 2022 and 2023 tariffs to the US dollar.
