Interbank rate throws HCC off rails

Interbank rate throws HCC off rails
Published: 17 July 2019 (212 Views)
HARARE town clerk Hosiah Chisango yesterday said the interbank rate has drastically affected council operations because this year's budget was based on a 1:1 ratio to the United States dollar.

Chisango told members of the Parliamentary Portfolio Committee on Local Government that this has resulted in a US$36 million budget for water chemicals being depleted fast in order to provide clean water.

He also told the committee that the 2013 debt write off which was ordered by government prejudiced the city of US$230 million and council struggling with indebtedness to statutory bodies such as the Zimbabwe Revenue Authority (Zimra).

He said the Harare City Council (HCC) was currently servicing around four million people, with the demand for water at 1 200 mega litres. But the design capacity of the water plant can only provide 704 million litres of water with the City of Harare only able to supply 300 million litres of water per day.

"We cover just 50% of the demand for water and shortages are due to population increase, dilapidated water infrastructure over the years, resulting in water rationing for high-density areas being 48 hours during the weekend and some suburbs like Mabvuku get water once per week," Chisango said.

"Our budget was based on a 1:1 exchange rate and our rates are still charged at the 1:1 exchange rate, yet all our expenses are now on the interbank exchange rate and there is a big gap which now needs a supplementary budget," he said.

Chisango said the monthly requirements for water treatment chemicals was US$2,8 million to produce 550 to 600 million litres per day.

He noted that water rationing might continue up to 2020 due to siltation unless the country is blessed with enough rains.

Chisango was grilled on how the US$144 million loan from China Eximbank for rehabilitation of water infrastructure was used, with MPs charging that it was used to purchase luxury vehicles.

He said the council received only US$72 million which was used to complete phase one of Morton Jaffray, computerisation of city district offices. He added that the other US$72 million was yet to come and the Finance ministry was following it up.

But, MPs demanded to see proof of how it was used, saying some luxury vehicles were also purchased resulting in China withholding the other US$72 million.
Chisango claimed the vehicles purchased were part of the project.

He said workers were owed US$27,4 million dating back to 2015 and the outstanding salaries were being paid in stages every month.

Chisango said the salary expenditure was $194 million out of $829 million with 23% going towards salaries and 77% towards service delivery.

The City of Harare owes Zimra $171 million of which the principal debt is $32 million.

Another $83,5 million is owed to the pension fund with $60 000 is forked out to pensioners every month.

Some $17 million is owed to the Harare Municipal Medical Aid Society and $2 million to the National Social Security Authority.

- newsday

Tags: Interbank, HCC, Harare,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Europe sends a strong message to Mnangagwa

by Mandla Ndlovu | 20 August 2019 | 95 Views

Jonathan Moyo, Kirsty Coventry mourn Mnangagwa's 'love-rival'

by Mandla Ndlovu | 20 August 2019 | 84 Views

Our 'scoop' obsessed jurnos, first things first

by Tondorindo Murisa. | 20 August 2019 | 52 Views

A Letter to Zimbabwe National Army Officers

by Poverty-Stricken Zimbabwean | 20 August 2019 | 76 Views

Chamisa's hired soldiers caught with their pants down

by Dr Masimba Mavaza | 20 August 2019 | 80 Views

European Union shocks Mnangagwa's government

by Mandla Ndlovu | 20 August 2019 | 69 Views

Rebecca Malope retires

by Mandla Ndlovu | 20 August 2019 | 111 Views

The Crocodile in Crisis

by The Times | 20 August 2019 | 137 Views

'Zimbabwe to issue cash notes soon'

by Bloomberg | 20 August 2019 | 191 Views

Zimbabwe youths rally behind Chief Ndiweni

by Mandla Ndlovu | 20 August 2019 | 142 Views

Zimbabwean woman forced to give birth standing up in South Africa

by Staff reporter | 20 August 2019 | 147 Views

Open letter to Jacob Mudenda: What was your role during Gukurahundi?

by Nicholas Ncube | 20 August 2019 | 102 Views

Moral authority is a pre-requisite for Good Governance

by Big Monday with Tinashe Eric Muzamhindo writes: | 20 August 2019 | 78 Views

Zimdiaspora in final push

by Thabo Makuyana | 20 August 2019 | 94 Views

WATCH: Soldiers in Gweru march on behalf of Chamisa's MDC

by Staff reporter | 20 August 2019 | 180 Views

August 16 exposes the MDC's insincerity

by Nobleman Runyanga | 20 August 2019 | 80 Views

Mnangagwa 'love rival' dies

by Staff Reporter | 20 August 2019 | 136 Views

State effects a de facto ban on civilian politics

by Luke Tamborinyoka | 20 August 2019 | 87 Views

Chitembwe signs Harare City deal

by Staff reporter | 20 August 2019 | 80 Views

Zanu-PF congratulates Mnangagwa

by Staff reporter | 20 August 2019 | 82 Views

Govt hires 19 doctors

by Staff reporter | 20 August 2019 | 85 Views

Duo in trouble for assaulting ex-mayor

by Staff reporter | 20 August 2019 | 76 Views

Kambarami and Chigora found not guilty

by Staff reporter | 20 August 2019 | 86 Views

BREAKING: Bomb scare in Bulawayo

by Staff reporter | 20 August 2019 | 87 Views

Match fixing scandal rocks Zifa Southern Region

by Staff reporter | 20 August 2019 | 73 Views

Chunga not qualified to coach TelOne side

by Staff reporter | 20 August 2019 | 88 Views

Zanu-PF hails Sadc

by Staff reporter | 20 August 2019 | 70 Views

Teen gangster pleads guilty

by Staff reporter | 20 August 2019 | 65 Views

No pay, no invigilation: Zimsec told

by Staff reporter | 20 August 2019 | 62 Views

Chamisa raises ante against Mnangagwa

by Staff reporter | 20 August 2019 | 76 Views

Police ban MDC Gweru demonstrations

by Mandla Ndlovu | 20 August 2019 | 52 Views

Zanu-PF vows resistance against MDC 'regime change' plot

by newzimbabwe | 20 August 2019 | 48 Views

MDC's campaign for Chief Ndiweni release worrisome

by Editorial - Newsday | 20 August 2019 | 65 Views

Rural teachers chicken out

by Staff reporter | 20 August 2019 | 39 Views

Protests a form of feedback

by Zanda Shumba | 20 August 2019 | 39 Views