THE Affirmative Action Group (AAG) Matabeleland Chapter is locked in another running battle with the Bulawayo City Council (BCC) over corporate governance irregularities.
BY MTHANDAZO NYONI
The AAG accuses the city of corruption and mismanagement. The group filed an urgent chamber application at the Bulawayo High Court, seeking the suspension of all councillors and the appointment of a commission of enquiry to investigate alleged tender irregularities at the local authority.
Bulawayo mayor, Martin Moyo immediately called for a Press conference to explain the city’s position regarding the issue. The AAG was also irked by reports that contracts, with a combined value of about $8,7 million, were re-tendered or extended, after companies either disappeared or failed to complete projects.
Defaulting companies allegedly worked in cahoots with senior council officials, who played tender adjudication and supervisory roles, creating opportunities for manipulation in the bidding process.
The AAG took Moyo to task over council’s decision to sell land to his deputy, Gift Banda, under unclear circumstances.
In a letter dated October 28 and addressed to Local Government minister Saviour Kasukuwere and Chief Secretary to the Office of the President and Cabinet, Misheck Sibanda, AAG said BCC was steeped in gross corporate governance irregularities.
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The group appealed to Kasukuwere and Sibanda to intervene, saying the people of Bulawayo were suffering at the hands of both the council executive and the elected councilors.
The AAG said in 2012, the city introduced a pipeline levy on the residents of Bulawayo and the purpose of the levy was to have a ring-fenced fund, from which they could fund the dualisation of pipelines in order to improve water supply to the city.
It said the levy has been and currently is charged to every household in the city at a rate of $1 a month.
“Over this period, 2012 to date, however, the proceeds from this levy have not been clearly accounted for to the residents of Bulawayo,” AAG said.
“As a ring-fenced levy, it is imperative to keep residents apprised on how much has been raised, how it has been allocated and how much is still required. Neither has there been an audit of this levy, nor any noteworthy strides towards improving the water woes of the city. Our concern lies in the misappropriation and mismanagement of this fund, while residents continue to suffer financial prejudice.”
The group said after the establishment of the Garikai/Hlalani Kuhle Scheme in Cowdray Park, the city of Bulawayo introduced a monthly levy of $50 to be paid by residents in the area.
The purpose of this levy, according to AAG, was to facilitate the servicing of the area, as requisite amenities to render the area habitable were not available.
AAG said since the influx of residents in the area, there has been remission to council, but many residents remained without basic amenities they continually pay for.
“And in cases where such projects have been put to tender, there has been gross mismanagement and substandard work, which has left beneficiaries of the Hlalani Kuhle Scheme struggling to get access to some of the most basic amenities that a household should have, being water supply and sewerage systems,” the group said.
It said Delta Beverages in Bulawayo was one of the largest industries, and its water and waste management demands far-outweighed the demands of other manufacturers in the city.
Over the years, the group said there had been a levy charged on Delta Beverages by the city of Bulawayo.
“This levy has a considerable contribution to the bottom-line of the City of Bulawayo. As a revenue source, it is important for the residents of Bulawayo to be kept apprised on the revenue generated from this Delta levy,” AAG said.
“However, the benefit to the city from this levy has not been clearly spelt out in the financials published and its budget contribution not clearly attributed. Preliminary probing has suggested that this levy has been swept under the rug for the purposes of misappropriation and defrauding the city.”
AAG said the city had various investments it had undertaken like Ingwebu Breweries and Aisleby Farm.
However, it said, as wholly or predominantly council-owned entities, their budget contribution to the city of Bulawayo had been blurred for reasons unknown to the people.
“The financial performance of these entities has a direct bearing on the performance of the city, but we have seen gross mismanagement of these investments,” AAG said.
The group said it was mind-boggling to hear that the city council intended to offer $500 000 sponsorship to a football team (Bulawayo City).
AAG said despite its support for sport, it was clear that the city was not in a position to disburse such amounts of money to non-investments, while faced with the more pressing service provision demands.
“Our fear is that this is yet another way of prejudicing the city of Bulawayo financially, using the structures available,” the group said.
In addition, AAG said the city of Bulawayo claimed to have frozen all recruitment, yet there was active and clandestine hiring taking place.
“This is the same with city council that has failed to comply with the stipulated 70:30 ratio between service provision and salaries. This is a mockery of both the ministry and the people of Bulawayo,” it said.
The group urged BCC to acknowledge the prevailing harsh economic conditions and opt to develop alternative revenue streams in order to buttress its financial position.
AAG told Kasukuwere and Sibanda that despite numerous attempts at getting answers from the city council, there had been no response to date.
“We, therefore, appeal to your good office to urgently intervene and rescue the people of Bulawayo from the continued prejudice that they suffer”.
Efforts to obtain comment from BCC officials were fruitless, as Moyo’s mobile number was not reachable.
An email sent to the public relations office had not been responded to at the time of going to print.
