ZANU PF has reported a huge budget deficit of nearly $5 million for the period ending December 1 as the party relied on donor funding and bank overdrafts to finance key projects.
In its central committee report presented at the 14th National People’s Conference which ended in Chinhoyi yesterday, Zanu PF said despite a landslide victory in the July 31 elections, the party’s finances were in the red.
The party’s total expenditure during the period under review stood at $9 million against a paltry $4,4 million in income.
Donations from unnamed sources, emerged as the key source of revenue accounting for $3 million of total income.
Despite facing problems in paying staff, the party said salaries, the national conference and harmonised elections accounted for $6 841 397 of total costs. Due to the borrowings, the party incurred nearly $1 million in bank charges and interest.
Constitutional meetings, the report further stated, accounted for $658 049 of total expenditure. The party also reported legal costs amounting to $420 000 resulting from post-harmonised elections petitions.
“The trend of insignificant cash inflows continues due to a number of factors hinged generally on the overall poor performance of the economy, the report reads in part.
“As a result, our traditional sources of revenue namely subscriptions, membership fees and donations are severely affected.”
Revenue collected from party cards and subscriptions marginally rose to $147 000 from $120 000, weighed down by dwindling support in Harare, Bulawayo and Matabeleland provinces.
Subscriptions in Bulawayo which in 2012 stood at $8 000, nearly halved in 2013, while in Harare the figure dropped to
$11 581 this year from $19 154 in 2012.
“Due to financial constraints, the party has not completed the process of revaluing its assets since the introduction of multi-currency,” the report further reads.
The central committee report also showed that Zanu PF received as at October 31, $1,1 million out of the $2,3 million the party is supposed to get from Treasury under the provision of the Political Finance Act.