Council seeks to borrow $1,3bn

Blessings Chidakwa Municipal Reporter

Residents have queried the decision by the Harare City Council to borrow about $1,3 billion to finance service delivery without addressing fundamentals for revenue collection.

In a notice, the local authority said it wants to borrow up to $1 361 080 800, with residents given until April 7 to make objections to the office of the acting town clerk.

There is concern over the allocation of the borrowed funds.

According to the breakdown, the renovation of Rowan Martin building has been allocated $120 000 000 compared to water provision which was allocated just $100 000 000.

Public lighting has the biggest allocation of $322 400 000, waste management $261 500 200, health $163 500 000, service vehicles $98 750 000 and traffic management $73 400 000.

Revenue collection was allocated $70 000 000, emergency services $68 980 000, ICT $11 500 000 and the least allocation is for corporate communication $8 250 000.

Council spokesperson, Mr Michael Chideme justified the allocation criteria.

“Those areas need resourcing. We are not able to fund the activities from rates account,” he said.

Combined Harare Residents Association programmes manager Mr Reuben Akili said the association was of the view that as long as there are no fundamentals that encourage ratepayers to pay rates the local authority will continue to borrow year in year out.

“The current status of the billing system is working against revenue collection efforts. Residents and ratepayers do not have much confidence in council billing system as most payments made are not deducted from the bills.

“There is no motivation from residents to pay rates due to the continued deterioration of service delivery hence the council will continue to borrow funds.

“Before the borrowing, we need to know how much council has been earning from tow fees, in their enforcement blitz they have been charging fines in forex for parking-related offences,” he said.

Mr Akili said residents expect that foreign currency would be used to fund traffic management.

“As an association we expect that after these borrowings that money should go to service delivery infrastructure especially water, health and waste management,” he said.