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Tendai Gukutikwa
Post Reporter
MUTARE City Council collected US$1,4 million due to the promotions it ran during the first half of the year, Acting Town Clerk, Mr Blessing Chafesuka has said.
Apart from promotions to pay bills in foreign currency, council has also resorted to selling USD ZESA tokens in its banking halls.
The US dollar collectionhas helped the local authority to procure equipment, pay part of its employees’ salaries as well as pay some suppliers in foreign currency.
Speaking during the 2022 Half Year Performance Review for the City of Mutare last week on Friday, Mr Chafesuka said some suppliers are demanding USD payments only, hence his team’s efforts to boost collection of foreign currency.
He, however, said the amount collected through the promotions has not been adequate to finance council’s projects.
Mr Chafesuka went on to call upon Government to review procurement regulations for local authorities in line with the prevailing economic environment.
“We are operating in a volatile environment with constant price changes and demands for better salaries from employees,” he said.
“Council is still waiting for the disbursement of the $158 million bank loan we applied for early this year. We are currently waiting for the disbursement in foreign currency. Using the current official rate, the value of the loan is now about US$334 000,” he said.
Mr Chafesuka said the loan had been earmarked for various projects, including roads rehabilitation, as well as procurement of a water bowser, an excavator, refuse trucks and fire tenders.
He also revealed that council’s request for its borrowing powers to be approved in US dollars was turned down.
Council, however, has made a new proposal of US$2,3 million, which is expected to fund projects that include the city’s water augmentation, citywide sewer maintenance as well as the Sakubva Stadium turf, among other projects.
In his report, Mr Chafesuka also stated that the city is owed more than $1 billion by residents and businesses in unpaid bills and for services rendered.
A total of $3 billion was billed to residents as of June 2022, with only $1,9 billion being collected, thereby reflecting a collection efficiency of 63,48 percent.
He said the huge debt is adversely affecting the local authority’s revenue collections, thereby crippling their smooth operations and compromising service delivery.
Mr Chafesuka said the status of service delivery requires all stakeholders to put their hands together.
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