…default US$ 1 m payments over five years
Beatific Gumbwanda
CHIREDZI– Farmers, majority of whom are A2 who are the beneficiaries of the land reform programme and occupying more than 30 000 hectares of sugarcane plots currently owe Chiredzi Rural District Council (CRDC) close to US$ 1 million in outstanding rates spreading over the past five years.
The revelation was made when the local authority have unveiled its ZW$ 7 158 883 788 proposed 2023 budget.
Masvingo province’s Gross Domestic Product (GDP) is largely premised on sugarcane production.
Chiredzi Rural District Council (CRDC) recently held its 2023 Revenue and Expenditure estimates meeting where they highlighted that sugarcane farmers are derailing progress of the local authority with a whopping close to US$ 1 million credit.
CRDC Finance chairperson Alderman Munyengeri Murawu said they are owed US$ 1 047 40 by corporates, government departments, business community, stand owners, council schools, commercial sugarcane farmers, rate payers and safari operators, with sugarcane farmers constituting 90% of the outstanding debt.
“Mr Chairman Sir, may I highlight to you that council is owed US$ 1 047 402.48 by companies, government departments, council schools, business community, stand owners, sugarcane commercial farmers, rate payers and safari operators,” said Alderman Murawu.
CRDC Treasurer Misheck Kutumba later clarified that sugarcane farmers constitute 90percent of that debt.
“90percent of the highlighted figure is from sugarcane farmers which stretch over the past five years and we are making strides to recover it from them,” said Kutumba.
The majority of sugarcane farmers in Chiredzi are Zanu PF big wigs and party loyalists.
The local authority also adopted its 2023 budget of ZW$ 7 158 883 788 which according to Alderman Murawo will have 60percent of it being own revenue ($4 348 230 633.00) while 40percent being government fiscal transfers ($2 810 653 155.00), with the local authority bench marking its tariffs in United States dollars.
“During the 2023 financial year, we anticipate that council budget will be ZW$ 7 158 883 788.00 with some $4 348 230 633.00 being own revenue and $ 2 810 653 155.00 being government fiscal transfers. Mr Chairman Sir, because of the current developments in the macro-economic environment, your council has benchmarked its tariffs in the United States dollars with dual invoicing United States dollars and Zimbabwean dollars but payable in any currency,” said Alderman Murawu.
He also highlighted that the cash cows for the budget will be property taxes, tax on sale of goods and services, parks and wildlife, operating licenses and Estate funds while 26percent will be channelled towards employees and councillors’ allowances.
“The cash cows for our 2023 estimates will be property taxes contributing $2 165 431 500.00, Tax on sale of goods and services $2 211 331 500.00, Parks and wildlife $346 851 000.00, Operating Licenses $459 882 000.00 and Estate funds $1 064 241 000.00. Mr Chairman Sir, $1 142 845 254.00 will go towards employee compensation cost which is 26.28% inclusive of councillors’ allowances and calculated from own estimates and 15.24% calculated from the whole budget,” added Alderman Murawu.
CRDC’s budget, which is seven fold the 2022 one, will be skewed towards water and sanitation, road networking and housing developments which are the basic drivers of investment opportunities which is being done by providing basic primary public service infrastructure, shortening commutes, ensuring portable water and improving quality and sustainable livelihoods.
