Chronicle Editor
Sharon Chimenya, Masvingo Correspondent
THE bureaucracy and laws governing the Masvingo City Council financial transactions is making it difficult for the local authority to be competitive in the liquor section, it has been revealed.
Masvingo liquor section is ridden with a plethora of challenges which include employment costs, bureaucracy, laws governing council financial transactions and the decision by Delta Beverages to charge most fast-moving alcoholic lager beverages exclusively in hard currency.
According to the minutes of the Finance and General Purposes Committee, in order to break even, the Liquor outlets should make minimum sales of $3 300 000 per month.
“The Director of Housing and Social Services reported that apart from employment costs the major challenges faced by the Council Liquor Section included the decision by Delta Beverages to charge most fast-moving alcoholic lager beverages exclusively in hard currency which council in most cases failed to raise.
Furthermore, the bureaucracy and laws governing council financial transactions made it difficult for Council to compete with private owned liquor players. It was reported that at some point, council had submitted an application to operate as a liquor stockist which was not approved by Delta Beverages,” read part of the minutes.
Meanwhile, management advised that a report on the proposal to operate the Liquor Undertaking Business on a commercial basis under a Strategic Business Unit would be tabled before council.
“The Committee agreed to invite Delta Beverages senior management to a special meeting of the Finance and General Purposes Committee with a view of discussing the challenges faced by council in liquor product supply.
It was resolved to recommend that the director of Housing and Social Services be instructed to invite Delta Beverages Private Limited management to a special meeting of the Finance and General Purposes Committee to discuss the supply of liquor products to Council liquor outlets.”
Meanwhile, Masvingo City Council is being owed $707 900 215 by its debtors with the institutional debtors contributing a huge chunk.
“The report of the acting Finance Director on high- and low-density residential areas reconciliation for the month of February 2022 covering debtors opening balances, closing balances and payments made by low-and high-density debtors was noted.
It was reported that the opening balance for high density debtors’ reconciliation as at 28 February 2022 was $127 442 704,36 billing of $72 352 230,48, collections amounted to $27 047 397,84 giving a closing balance of $172 747 537.
The revenue collection efficiency for the month under review was 40,4 percent. It was noted that the total debtors as at 28 February 2022 stood at $707 900 215,77 with institutional debtors contributing $202 975 443,66,” read part of the minutes.
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