Online Reporter
Vusumuzi Dube, Deputy Radar Editor
BULAWAYO City councillors on Wednesday last week resolved to have the local authority allocate each of them US$4 000 in loan facilities for the purchase of personal vehicles.
The decision flies in the face of the local authority’s admission that it is facing significant financial challenges resulting in noticeable service delivery gaps.
The councillors opted to alter a Government directive that requires local authorities to provide them with motorbikes to assist in their duties saying the facility should not restrict them to motorcycles but should be flexible enough to allow them to buy cars.
The issue arose during a debate initiated by Ward 15 Councillor, Ashton Mhlanga, who proposed the implementation of the motorbike loan facility directive for the City of Bulawayo.
According to the motion, Clr Mhlanga whose ward covers Cowdray Park called for the implementation of the motorcycle loan facility directive, which was issued on 26 September 2024.
“Whereas the Ministerial Circular dated 26 September 2024, directs that councillors be availed with a motorbike loan facility for the purpose of enhancing their ability to effectively perform their duties as elected representatives; and whereas the circular provides that such loans should be made available to councillors in a manner that supports their mobility needs and ensures their ability to serve their wards efficiently,” reads part of the motion. Clr Mhlanga went further to propose that the local authority implement the loan facility in an amount that is not more than the market value of a fit-for-purpose, decent and roadworthy motorbike, suitable for use in the course of their official duties.
“The loan shall be repayable within the tenure of the current council term, with clear repayment schedules to be provided to each councillor. Instead of the council purchasing the motorbikes on behalf of the councillors, the loan shall be disbursed as a cash sum to each councillor.
“This cash sum shall reflect the current market value of a motorbike, allowing councillors to independently purchase motorbikes of their choice and this resolution must be communicated to the Ministry and other relevant authorities for implementation in accordance with the Ministerial Circular of 26 September 2024,” reads the motion.
Giving comments on the motion, various council departments, while stating they have no objection to the directive, raised several anomalies, the main one being the capability of the councillors to service the loan facility by the time their terms of office come to an end, considering that their monthly allowance is pegged at US$75.
“The proposal is noble, however, the following trends are to be noted: the councillors’ allowances are at US$75 which is not adequate to pay the instalments calculated on the remainder of their term in office. 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.
“Banking Act and Regulations are against handling such amounts outside the banking system, as councillors prefer cash. Deductions should not be more than 25 percent of the emoluments (if we follow the Labour Act or best practice) translating to a deduction of US$18,75 which entitles the councillor to a loan amount of US$1 125 (before interest) for a full term in office of 60 months,” reads a response from the council’s finance department.
The local authority’s chief internal auditor noted that the loan should be disbursed to the motorcycle dealership and not to the councillors.
However, in deliberating the loan facility during a council in-committee session last Wednesday, it has since emerged that the councillors instead have resolved that the loan facility should instead be disbursed into their personal accounts at a value of US$4 000, with an interest rate of six percent per annum.
That effectively means that the local authority, which is already struggling to meet some of its financial obligations, will have to disburse a total of US$152 000 to the 38 councillors in the city.
“Councillors felt that they should be given the right to purchase a vehicle of their choice and not be obligated to the motorcycle, they further said this loan should be disbursed into their personal accounts and not direct to the supplier.
“Now, with that resolution, council management will have to write to the Ministry with the reasons put forward by the councillors, as the next step before the loans are disbursed,” said a councillor who attended the meeting.
Contacted for comment, Director of Communication and Advocacy in the Ministry of Local Government and Public Works, Mr Gabriel Masvora said in such a scenario council should seek authority from the ministry.
“As you know this motorcycle loan facility is something that we came up with to aid councillors in conducting their duties and we have unveiled a number of motorcycles that were purchased by the various local authorities.
“How the loan works is that the respective councils are the ones that purchase the motorcycles at one go then they hand them over to the councillors. Councillors are not meant to be getting cash, even in parliament, MPs do not get cash disbursement for their vehicles but they get the vehicles as a loan,” said Mr Masvora.
The Ministerial spokesperson said the motorcycle facility was strictly to ensure councillors move from one place to the next.
“If Bulawayo councillors have resolved to get these cash loan disbursements, they cannot do so without Ministerial approval hence they have to write to us but I do not see them altering a Ministerial directive,” he said.
