Chronicle Editor
Patrick Chitumba, Midlands Bureau Chief
THE hyper-inflationary environment affecting the economy is negatively affecting the smooth utilisation of devolution funds by Gweru City Council (GCC), the acting town clerk Mr Vakai Douglas Chikwekwe has said.
Mr Chikwekwe said the local authority is receiving funds in local currency and therefore meets challenges when buying materials and equipment needed for the projects as suppliers demand forex.
“We would have budgeted for what we want to buy but when the money is released to us it is in local currency.
The challenge comes when we want to buy as suppliers demand forex or constantly change prices.
They tell us that since its taking long from the time we make inquiries and the time we want to buy, the prices would have changed as most suppliers use the black market rate,” he said.
Mr Chikwekwe said what is making the situation worse for council is that it takes long for it to receive foreign currency bought through the Reserve Bank of Zimbabwe.
He said council is usually blamed for failing to fully utilise the devolution money yet it is required to seek approval from Government when price variation is more than 20 percent.
Mr Chikwekwe said council last year received $320 million as devolution funds which was used to procure heavy machinery.
“We recently bought a tipper truck which is yet to be delivered.
We also bought an ambulance and front end loader,” he said.
Mr Chikwekwe said council is sometimes blamed for late acquittals but it would be due to price variations which would have delayed purchasing or commencement of projects.
“When we get money we invite tenders and suppliers give us prices.
Due to the hyperinflation, suppliers increase prices before we buy as they peg prices based on the black market exchange rates,” he said.
Mr Chikwekwe dismissed allegations of misappropriation of devolution funds saying there were several checks and balances.
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