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Zvimba Rural District Council is at loggerheads with the Mhondoro-Ngezi-Chegutu-Zvimba Community Share Ownership Trust over the leasing of equipment bought with funds disbursed by Zimplats. The equipment includes front-end loaders and graders bought from the district’s share of US$10 million disbursed to the Trust by Zimplats.
Officials in the Zvimba RDC and members of the community are of the view that as beneficiaries they should not be made to pay to use the equipment.
Provincial administrator Mr Christopher Shumba confirmed the situation.
“People are of the view that they are being taxed when they should benefit from proceeds from operations of Zimplats in the area,” he said.
The community says paying the money was tantamount to levying again the same community.
It says the Trust is now operating like a company that has to make a profit.
The Trust is charging US$78 per hour for a grader and US$59 for a front-end loader against commercial rates of around US$120 per hour.
The fee is slightly higher for other members of the CSOT as they opted for other projects like building bridges while Zvimba bought the equipment that was commissioned by President Mugabe last year.
Trust administrator Mr Swedi Phiri said the rates were nominal and would go towards repair and maintenance of the equipment.
“We bought the equipment and council utilises it. We charge them 25 percent of the commercial rates,” he said.
“What we are charging will go towards maintenance of the equipment. Machinery wears and tears so it needs to be maintained.”
He said other councils, including Chegutu and Bindura, had shown interest in hiring the equipment for maintenance of roads.
They are charged US$90 for the grader and US$68 for the front-end loader.
Contacted for comment on involvement in the administration of the Trust, Zimplats corporate affairs manager Ms Busi Chindove said the platinum mining giant was not involved.
“Zimplats is not involved in the administration of the Trust. The administrator Mr Phiri is better placed to address the issue,” she said.
Other CSOTs are also hiring out equipment to ensure they are able to maintain it sustainably.
Mr Phiri said the decision to charge for use of the equipment involved Zvimba RDC as they were represented in the board.
Online Reporter