LOCAL authorities have flagged inconsistent policies which block them from collecting revenue in foreign currency and coming up with cost-reflective tariffs, it emerged last week.
Local authorities are under the spotlight amid deteriorating service delivery despite ratepayers religiously paying their bills every month.
Speaking at the two-day third edition of the Institute of Chartered Accountants of Zimbabwe Local Authorities Convention in Nyanga last week,Ruwa local board finance director Fatima Mhiti said the laws and policies were not speaking to each other.
“I think some of our challenges are common, whether rural or urban. I would want to start by saying that one of our common challenges is that the laws and the policies do not speak to each other. They clash,” Mhiti said.
“In truth, the few US dollars I collect will be coming from a certain quota, which I am not allowed to use for the current expenditure. In as much as ratepayers are allowed to pay their rates using their preferred currency, they buy local currency on the parallel market and come to dump the ZiG at local authorities.”
She said the inconsistent policies have left local authorities struggling to fulfil their mandate.
“Buying fuel to collect garbage requires foreign currency. Hiring equipment to make roads also requires foreign currency,” Mhiti said.
“Moreover, buying chemicals to treat water also requires foreign currency…I am just saying our policies should speak to each other.”
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She said tariffs were being moderated and reduced by the central government.
“We are told not to hire equipment to use as it is expensive, but we do not have an alternative. I have no choice except to hire. So, these are some of the challenges we have,” Mhiti said.
“That each one in their sphere, they will make regulations, they will make laws, but there is no platform where we stay and discuss to see the impact of that law or that policy on the local authorities.”
She said local authorities suffered a lot in terms of coming up with tariffs and budgets as a result.
“Sometimes I feel they are discussed and approved by individuals who are far away from the ground in Harare, those people do not understand the scenario that happens on the ground,” Mhiti said.
“So, you will notice that on our tariffs, there is a lot of interference in terms of saying you cannot charge this, you have to charge that. We are the only ones who have tariffs where we charge lower than the market.”
One example, she said, was properties where local authorities had to charge far lower than the prevailing market rates.
The executive said the challenges faced by local authorities required urgent attention.
“The challenge is the other service providers, for example, Zesa, currently charge a commercial tariff. They do not consult,” Mhiti said.
“They just send a paper to say the tariff has been increased and even mid year when my budget is already running.”
