Chronicle Editor
Vusumuzi Dube, Online News Editor
THE Bulawayo City Council recently revealed alarming shortfalls in its debt collection efficiency which stands at an average of 58 percent in the second quarter of the year, with concerns raised on the impact it has on the city’s service delivery.
According to the city financial status report presented during performance review consultative meetings held last week, the municipality billed an average of ZiG145,3 million, in the second quarter (April-June) but only managed to retrieve receipts totalling an average of ZiG84,6 million. This situation has resulted in a concerning debt collection efficiency rate of 58 percent, signifying a significant shortfall in revenue collection.
The discrepancy between the billed amounts and the actual receipts has raised serious concerns about the city’s ability to maintain efficient service delivery to its residents. The shortfall in revenue collection directly impacts the city’s capacity to provide essential services, including waste management, water and sanitation, road maintenance, and other crucial municipal functions.
City officials have expressed concern about the long-term implications of this financial imbalance. According to the statistics in April, the local authority billed ZiG141 million and got receipts of ZiG72 million, in May they billed ZiG146 million with receipts of ZiG96 million while in June from billing amounting to ZiG149 million they got payments amounting to ZiG86 million.
Their highest debt collection efficiency for the second quarter was in May where it was pegged at 66 percent. The local authority further revealed that for the first six months of the year, they have received US$599 800 from the parking management system partnership with Tendy Three Investments (TTI), with the highest-grossing month being in January when they received US$118 289.
Of the collected parking revenue, the city has since January utilised US$ 330 226, with the highest expenditure being recorded in May where they used US$147 358 while the lowest expenditure was January’s US$30.
The latest council report also states that 37 percent of the total revenue collected by the local authority is going towards employment costs which is against the government stipulated 30 percent.
“From the revenue collected, 37 percent went towards employment costs. Payment to contractors was 19 percent of the cash collected and ZiG77 million surplus cash was carried forward to June 2024 and was utilised to settle PAYE, VAT and casual workers’ salaries which are paid in the first week of the month.
“There was an increase in debtors from ZiG353 million to ZiG402 million. The trend is showing a reduced pace of increase in debtors from 25 percent between March and April to 14 percent between April and May figures. This is a result of the exchange rate stability experienced since the introduction of the ZiG,” reads the report.
The local authority further revealed that an analysis of May 2024 receipts shows that ZiG52 million (that is 55 percent) of the total receipts from billed accounts was received from domestic consumers while ZiG43 million (that is 45 percent) was from non-domestic consumers.
BCC has previously emphasised the need for proactive measures to address the issue, including the implementation of more robust debt collection strategies and financial management practices. Additionally, there is a call for increased public awareness and co-operation to ensure timely payment of bills and municipal fees, which are vital for sustaining the city’s operations.
Online Reporter