The financially-troubled Gwanda Municipality has revealed that it owes its creditors over $10 million, but is making concerted efforts to address the long overdue debt.
By Own Correspondent
Speaking at the presentation of the 2016 budget statement, finance and licensing committee chairman, Johane Ncube said the national economic and business environment had been characterised by poor liquidity, resulting in very little cash being in circulation and this had filtered through to and negatively affected the municipality’s operations as residents had very little cash to pay for services.
“When the year began, we set out to collect revenues of $9,7 million. Unfortunately, we were unable to achieve this target and only collected $3 million being 31% of budget,” he said. “May I take this opportunity to encourage our residents and various stakeholders to partake in the upliftment of our town through payment of rates and service charges. The amount owed by debtors has ballooned to $5 million. Unpaid accounts negatively impact on the ability of council to effectively deliver quality services.”
He added: “On the other hand, we owe our creditors above $10 million, the major one being a debt owed to Zinwa of $8,2 million.We also owe Zimra and other statutory bodies more than $1 million.”
Ncube said the municipality had since engaged debt collectors to improve revenue collections, adding, although it had been a tough year, they had made some notable achievements, like the installation of tower lights, traffic lights, construction of public toilets and rehabilitation of roads..
The 2016 budget has been set at $6,4 million, down from $9,7 million this year.
“We have tried our best to craft a realistic budget, as the prevailing economic environment necessitates that we thoroughly evaluate our plans so that achievable forecasts are included in the budget,” Ncube said.
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Capital expenditure will cost $2,1 million, general expenses $1,98 million while employee costs will be $1,9 million being 30% of the budget and within the Local Goverment ministry’s guidelines.
Included in the capital budget are pre-paid water meters, completion of a water reservoir, roads rehabilitation, new ambulance and maternity wing at Phakama Clinic, additional tower lights and heavy-duty generators for water pumping stations.
The municipality said its rates would generally remain unchanged with current charges set to be maintained.
