BULAWAYO City Council (BCC)’s debt has increased by 4% to $109 million as at the end of September 30 as council continues to acquire goods and services on credit while there is a backlog in payments for services received, latest council minutes have shown.
BY MTHANDAZO NYONI
According to the minutes, council owed statutory bodies such as the National Social Security Authority, Municipal Provident Fund and the Zimbabwe Manpower Development Fund about $42,4 million as at September 30. It also owed about $57,2 million to TelOne and Zesa.
The council also owed workers $4,9 million in outstanding salaries while unpaid taxes had increased to $1,4 million. Financial institutions are owed $986 000.
The council owed trade creditors an amount of $2 million. In addition to the $90 million municipal debt, the council is also owed $3,6 million by government.
Last month, BCC proposed a flat 2016 budget of $154 million with no tariff increases.
BCC lost $47 million in 2013 after government directed all municipalities to cancel domestic water bills and property taxes incurred by households between February 2009 and June 2013, citing a difficult economic environment that made it difficult for households to pay.
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The directive, according to council’s finance and development committee chairperson James Sithole, crippled the City of Kings.
Meanwhile, Sithole has indicated that the BancABC had since extended an $8 million loan for waste water management. The drawdown has started to tackle the dilapidated sewer infrastructure. This, according to Sithole, involves refurbishing sewerage pump stations and replacing old sewer lines.
