peter
Vusumuzi Dube, Online News Editor
LOCAL authorities across the country have been urged to comply with the Government directive to bill residents in local currency only, as part of measures to promote the use of the country’s currency ahead of the United States dollar.
Prior to the directive, a number of local authorities announced that they were pegging their services in foreign currency saying residents have the option of either paying in local currency using the prevailing rate as at billing time.
In a statement, the Zimbabwe National Organisation of Associations and Residents Trust (ZNOART) said local authorities should stand guided by a directive dated 1 September 2022 from Treasury to collect all fees and levies in Zimbabwe dollars only, except where specified.
According to the directive, any collection of fees and levies for services rendered in foreign currency by Government ministries, departments and agencies, as well as local authorities, is illegal and should be in local currency at the prevailing interbank rate, unless granted exceptional approval by Treasury.
ZNOART national chairperson, Mr Sheperd Shalvar Chikomba noted that while the Treasury directive had been a welcome relief to the ordinary residents in theory, in practice service providers were wantonly dollarising.
“ZNOART clearly understands viability and cost recovery in public service provision but it is surprising that the USD charges are across the board, regardless of whether or not the service has a foreign currency component. This is contrary to Section 13(c) of the Public Finance Management (General) Regulations and also contrary to the Treasury directive that directly grants “exceptional approval.” ZNOART sees no justice for “exceptional approval” as there has been poor and non-existent service delivery, yet service providers’ management is always leaving large.
“SI 118A of 2022 legally establishes a local currency debt payable in local currency and a foreign currency debt payable in foreign currency. Therefore, conversion of legacy debts is null and void as it defeats spirit of SI 118A of 2022. USD is legal tender but payment for services within service providers has been directed to use ZWL equivalent at plus or minus 10 percent of the prevailing interbank rate published by the Reserve Bank of Zimbabwe according to SI of 118A of 2022,” reads the statement.
Mr Chikomba said charging in forex by local authorities was illegal as it was tantamount to budget tampering.
“ZNOART stands guided by a two-way communication fundamental which regards feedback as continuous and central to both the service providers and residents as enshrined in the Devolution and Decentralisation Policy of 2020.
“Service providers must first engage residents, get their approval and input in principle when intending to review an approved budget.
“Councils should not apply dollarisation clandestinely because there is no law in Zimbabwe that allows billing residents in USD when the budget was adopted in ZWL.
“The switching of currencies is in contravention of Public Finance Management Act and amounts to budget tampering,” reads the statement.
Online Reporter