Chronicle Editor
Sikhumbuzo Moyo, [email protected]
THE Ministry of Local Government and Public Works has been directed not to approve the Bulawayo City Council (BCC) 2025 budget until the local authority addresses concerns raised by the business community regarding the 2024 budget.
The Confederation of Zimbabwe Industries (CZI) Matabeleland Chamber accused BCC of using an incorrect formula to index tariffs for 2022 and 2023 in US dollars, resulting in exorbitant charges. Despite a series of meetings between CZI representatives, BCC officials and Bulawayo Provincial Affairs and Devolution Minister, Judith Ncube, no resolution has been reached.
In a letter to Dr John Basera, Permanent Secretary in the Ministry of Local Government and Public Works, Chief Secretary to the President and Cabinet, Dr Martin Rushwaya, emphasised the need to resolve these issues before progressing with the 2025 budget.
“I draw your attention to the above-captioned subject matter presented to your esteemed offices in a letter dated October 11, 2024 by Confederation of Zimbabwe Industries, Matabeleland Chamber vice-president, Clive Oxden Willows. I find the matters they raise to be quite valuable and deserving of engagement by the City of Bulawayo,” read the letter.
“You are, therefore, hereby urged to ensure that the City of Bulawayo attends to the stakeholder queries before your ministry approves its 2025 budget. By copy of this letter, CZI are informed that they should expect your intervention in the matter.”
Last month, BCC presented a US$309 million budget for 2025, saying it was aimed at enhancing service delivery, focusing on gender-specific projects and revitalising the city’s recreational facilities.
In his letter to Dr Basera, Mr Willows said their objection to BCC’s 2024 budget met the requirement of the Urban Councils Act (Chapter 29:15) and was not lawfully addressed by the council. He said the engagement process with council management has been unsuccessful while the Urban Councils Act and best practices in public finance management require the council to address objections to the 2024 budget before presenting the 2025 budget.
“This is long overdue and attempts that involved the ministry officials did not yield results. The council must consider and respond to objections before finalising the 2025 budget,” wrote Mr Willows.
He said the 2024 budget’s substantial increase in US dollar tariffs was unjustified, as the council’s input costs did not rise proportionally. He added that BCC’s reluctance to address objections eroded public trust and undermined accountability and transparency.
Mr Willows said their analysis confirmed that the council did not experience an increase in input costs to justify such elevated escalation.
He said their members would like the council to address and respond to 2024 budget objections before the 2025 budget is presented for approval. CZI argued that the 2025 budget must reflect tariff changes that incorporate the 2024 objections.
CZI is on record saying a number of companies in Bulawayo were struggling and reducing operating hours or relocating to other cities due to high rates and service charges by BCC.
CZI alleges that BCC miscalculated tariffs under Statutory Instrument (SI) 118A of 2022, which mandates economic actors to index goods and services prices to the US dollar and convert them to local currency using the prevailing bank rate.
Mr Willows said captains of industry and residents’ associations noted a dramatic increase in BCC’s service charges in July 2022.
According to CZI, the council’s decision to keep the 2022 budget static in 2023 and 2024 was a façade to conceal these miscalculations.
Mr Willows stated that some industries are facing viability challenges, and as a survival strategy, they have cut down on labour costs by operating on a reduced number of hours monthly.
CZI insists that meaningful stakeholder consultations are essential for the 2025 budget to reflect tariff adjustments that address the 2024 objections. The organisation has threatened urgent legal action to prevent the council from proceeding with its 2025 budget until these concerns are lawfully addressed.
“It would be of mutual benefit that the council engages stakeholders and the public in meaningful consultations and respects the concerns, knowledge and skills of stakeholders. We have so far avoided approaching the courts for redress and are considering doing so should we see that there is no traction as has been the case so far,” said Mr Willows.
“We have taken a position that we will approach the courts on an urgent basis to prevent the council from proceeding with the 2025 budget until the objections to the 2024 budget are lawfully addressed.”
Online Reporter