Byo council's financial outlook bleak: Moyo

BULAWAYO - The Bulawayo City Council has attributed its failure to provide basic services to the prevailing liquidity crunch which it contends has shooed away prospective investors.

In his New Year message, Bulawayo mayor Martin Moyo admitted that the city’s financial outlook was bleak.

“Lack of investment in the city and the prevailing liquidity crunch negatively impacted on council’s financial outlook,” Moyo said.

The first quarter of the year saw cash receipts decreasing from $6,5 million to an average of $5 million recorded in the same period in 2013.

Moyo said council required an average of $7,2 million per month to provide basic services.

“On the first of January 2014, the city was owed $77,2 million,” he said.

“This figure has since ballooned to $90 million as at the end of the year, compounded by consumers failing to settle their indebtedness to council, thereby compromising service delivery.”

Moyo noted that most consumers are feeling the economic squeeze as a result of some companies folding, which has resulted in high unemployment.

The current crunch comes less than two years since government ordered local authorities to write off debts dating back to 2009. 

Council cancelled $46 million then owed by residents following a directive by Local Government minister, Ignatius Chombo.

Due to continuously diminishing cash-inflows, Moyo said creditors’ balances have also spiked, forcing the local authority to enter into payment plans with its creditors.

The mayor bemoaned a recent Harare High Court ruling prohibiting local authorities from disconnecting water supplies without a court order, which he said has adversely affected the city’s revenue collection.

Moyo regretted that the city failed to raise funds to finance most of the budgeted activities for the year, in what he said also led to reduced service delivery levels.

Comments (7)

zvinosiririsa kuti nyika yedu itambure zvakadai. mari yacho ikawakikwa, inotorwa nevanhu vashomanana voita zvavanoda nayo. dzimwe nhuva inotengeswa motokari dzemhiri ipo pasina mugwagwa wekudzi drivira. very sorry maningi.

tula - 7 January 2015

That's why council employees are suffering becoz there don't have customer care, they are rude.

agnes - 8 January 2015

That's why council employees are suffering becoz there don't have customer care, they are rude.

agnes - 8 January 2015

That's why council employees are suffering becoz there don't have customer care, they are rude.

agnes - 8 January 2015

That's why council employees are suffering becoz there don't have customer care, they are rude.

agnes - 8 January 2015

That's why council employees are suffering becoz there don't have customer care, they are rude.

agnes - 8 January 2015

That's why council employees are suffering becoz there don't have customer care, they are rude.

agnes - 8 January 2015

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