×
NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

BCC debts up 6% in January

Business
BULAWAYO City Council (BCC)’s debt ballooned by 6% to $155 million in one month to January 31, as council continues to acquire goods and services on credit.

BULAWAYO City Council (BCC)’s debt ballooned by 6% to $155 million in one month to January 31, as council continues to acquire goods and services on credit.

BY MTHANDAZO NYONI

According to the latest council minutes, as at January 31, 2017, BCC’s debt stood at $155 million up 6% from $147 million recorded in the previous month.

Council owes statutory bodies such as National Social Security Authority, Zimbabwe Manpower Development Fund, Local Authorities Pension Fund, Zimbabwe Urban Councils Workers Union, about $43 million, TelOne, Zimbabwe National Water Authority and Zesa about $82 million.

The council also owes workers $8,4 million in outstanding salaries and allowances while unpaid taxes had increased, to $1,9 million. Financial institutions are owed $13 million including the Infrastructure Development Bank of Zimbabwe debt.

It also owes trade creditors $1,7 million. Medical aid, funeral policies and standard development levy were owed $4,7 million.

In addition to the $155 million municipal debt, the council is also owed $150 million by residents. Government on the other hand owes $1,8 million.

BCC financial director, Kimpton Ndimande said creditors balance for the month of January increased to $154 901 003 from $146 627 618 as council continues to acquire goods and services on credit.

He said low levels of cash inflows continue affecting budgeted expenditure resulting in a favourable variance of $3,9 million.

BCC town clerk, Christopher Dube recently attributed residents’ indebtedness to liquidity constraints currently bedevilling the economy, low capacity utilisation, low disposable income, company closures and high levels of unemployment.

“Cash flow challenges hindered council from paying its trade creditors on time, thereby, negatively affecting relations with suppliers. Failure to pay suppliers within 30 days has seen an increase of suppliers who are now demanding cash up front,” he said.