The Sunday News
Sharon Chimenya, Masvingo Correspondent
RESIDENTS in Masvingo have challenged the city council’s move to rebase the 2022 budget tariffs in foreign currency, arguing that the move was illegal.
The council followed Bulawayo in rebasing its bills in foreign currency arguing that this was a way of hedging against weakening of the local currency.
Residents in the city have started receiving the rebased bills, forcing some to pay more than double what they paid before the rebasing.
Masvingo Urban Residents Ratepayers Association through its lawyers, Mutendi, Mudisi and Shumba, wrote to the city fathers to outline the basis of charging in foreign currency as the budget does not contain any provisions for such.
“Our client has brought to our attention your notice to the residents and ratepayers of Masvingo in which the City of Masvingo advises that it would be rebasing its 2022 tariffs in United States dollars as at the date of the budget approval.
“We wish to reiterate our client’s concerns as contained in its letter dated 22nd of June 2022 and advise that the rebasing of the 2022 tariffs in United States dollars is contrary to clear provisions of section 288 of the Urban Councils Act (Chapter 29:03) as read with Section 47 of the Public Finance Management Act,” the notice read.
The residents representative body has instructed the local authority to avail proof of the legal basis for the rebasing or else the body will take legal action.
“Furthermore our client instructs that the approved 2022 budget does not contain any provision allowing for rebasing and to that extent, the rebasing of 2022 tariffs has no basis.
“In the circumstance, we are instructed to demand as we hereby do, that you furnish us with proof of any legal basis for rebasing the 2022 tariffs for City of Masvingo, failure of which we have been instructed to institute legal action without further notice to you,” read part of the document.
Council said the operating environment was no longer conducive hence the need to dollarise and survive the prevailing economic situation.
