The Sunday News
Vusumuzi Dube, Online News Editor
THE Bulawayo City Council (BCC) could find themselves in trouble with the Government as they have been directing just 25 percent of revenue towards service delivery with the rest going towards salaries.
According to the Government stipulations, local authorities are supposed to adhere to 70 percent salaries while 30 percent goes to services with councils required by law to submit yearly budgets that reflect the ratio. However, Sunday News can reveal that the local authority has since January not been adhering to this ratio.
In January, according to a council report, the local authority used 76 percent of its monthly revenue for the payment of salaries, this translating to $309 547 266 after collecting $407 952 849. In the same month, $80 million (20 percent) was used for general expenses and $18 million was used for repairs. Nothing was directed to maintenance, capital charges, capital contributions and recharges.
“As at 31 January 2022, expenditure amounted to $407 952 849 of which salaries were 76 percent of the total expenditure followed by general expenses at 20 percent, repairs — four percent as for maintenance, capital charges, and capital contributions they were all at zero percent. There was a slow start on discretionary expenditure (that is expenditure on non-salary items) due to the delay in approving the budget,” reads the report.
In February the local authority also directed 76 percent of its total revenue to paying salaries after collecting $1 billion of which $777 million went to salaries followed by general expenses at $205 million (20 percent), repairs $39,9 million (four percent) with maintenance, capital charges, and capital contributions not getting any funding.
For March, BCC, after collecting $1,3 billion used 72 percent of the money to pay their salaries.
“As at 31 March 2022, expenditure amounted to $1,9 billion of which salaries were 72 percent ($1,3 billion) of the total expenditure followed by general expenses at 23 percent ($413 million), repairs four percent ($67 million), recharges two percent ($34 million) as for maintenance, capital charges, and capital contributions they were all at zero percent,” reads the report.
In April, of the $2,8 billion raised by council $2,1 billion was used for the paying of salaries which translates to 75 percent of the total expenditure followed by general expenses at 19 percent ($530 million).
According to a council confidential report, the local authority notes their dire straits, in response to a request for a salary adjustment by its workers, who demanded that employees be awarded a basic salary of $100 000 and a Cost of Living Adjustment of $30 000.
“Council’s billing income for March 2022 is $1,1 billion. The proposed gross wage bill is $1,2 billion which exceed billing income. The collectability of billed income currently stands at 60 percent which is not enough to cover the workers union’s quarter position. Collections have remained subdued, with a monthly average of $750 million. The collections cannot meet the current expenditure which is at $1,2 billion,” reads the report.
According to the position paper from the council workers, they noted that they had been disadvantaged after salary adjustment negotiations had taken place for the first quarter of the year.
“Our position is that all grades have notch difference of three notches across the board, that employees be awarded a basic salary of $100 000 as the poverty datum line is currently at $102 000. That council cushions its employees with a COLA of $30 000 as any delay in salary negotiation adjustments always impacts negatively on the monetary value of the worker and that salary reviews continue to be done quarterly,” reads the position paper.
