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Chinamasa reads riot act to wasteful councils, says only properly audited local authorities allowed to borrow

07/01/2018 00:00:00
by Business reporter
 
 
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Finance minister Patrick Chinamasa said only local authorities which are efficiently run and properly audited are allowed to borrow from financial institutions to improve their service delivery.

Chinamasa said this while addressing heads of urban and rural authorities in Mutare last week.

The meeting was convened by Zimbabwe National Roads Authority (Zinara) to craft a roadmap and strategies for infrastructure development in 2018.

Chinamsa said under the new political dispensation local authorities will no longer be mere employers but service providers.

"Municipalities should not be just employers but service providers," said Chinamasa, adding that councils countrywide were spending 90 percent of their collected revenue on salaries.

He said it was high time councils restructured their budgets and channelled funds towards service delivery and infrastructure development.

"We are not going to give you money for fiscal convenience until you put your house in order. It is like throwing money in a bottomless pit. It's not viable. Let’s do things in a proper manner.

"Let’s go to the basics. Local authorities that are run efficiently with audited books will be given borrowing powers not for consumption but to procure equipment and enhance service delivery. They will have the privilege to borrow," said Chinamasa.

He said the councils must to revert to 70-30 formula where 30 percent went to salaries and the rest to service delivery.

The minister blasted local authorities who use money meant for infrastructure development to pay their outstanding salaries, saying "this will no longer be tolerated".



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