Harare City to go for whole year without approved ...

Harare City to go for whole year without approved budget

Nyashadzashe Ndoro

CHIEF REPORTER

The Harare City Council is facing a severe financial crisis after the Ministry of Local Government and Public Works rejected its 2024 budget proposal, citing numerous irregularities and shortcomings.

This means the city will go without an approved budget for the entire year, exacerbating its already strained financial situation.

“My Council approved the 2024 Budget early last year in terms of the Ministerial Guidelines and compliance with Section 288(1) and forwarded the same to the Minister of Local Government and Public Works in terms of Section 288(2)(b).

“Unfortunately, The Minister of Local Government and Public Works did not approve the budget because of the audited financial statements backlog and failure to implement ERP System amongst other issues,” said Mayor Jacob Mafume during the State of the City Address on Wednesday.

The Ministry highlighted that the council's lack of a functional Enterprise Resource Planning system has resulted in low revenue collection, poor service delivery, and a lack of transparency and accountability.

The council has also failed to address its massive debt, which stands at over ZiG 940 million, and has not made provisions to address this issue in the proposed budget.

“The City remains hamstrung in cash-flows as most consumers are not paying. We are owed in excess of ZIG 940 Million. Residents, Industry and Commerce are the major debtors and we continue to deploy measures to enforce payment. Our Collection efficiency remains less than 50% of our potential,” said Mayor Mafume.

The council is struggling to pay for water chemicals, procure plant and equipment, and pay creditors and service providers on time. To address the financial crisis, the council has begun issuing final demands, summons, and will commence replacing old water meters to ensure billing efficiency.

“We are appealing to all our debtors to honour their obligations so that we continue to pay for our water chemicals, procure plant and equipment and pay all our creditors and service providers timeously,” said Mayor Mafume.

The Ministry of Local Government and Public Works has urged Harare City Council to address its shortcomings before resubmitting its budget.

Earlier this month, President Emmerson Mnangagwa swore in a Commission of Inquiry to investigate the City of Harare’s operations since 2017, amid concerns over the council’s financial practices and adherence to regulations.