Bulawayo City councillors on Wednesday last week resolved to have the local authority allocate each of them US$4 000 in loan facilities for the purchase of personal vehicles.
The decision
flies in the face of the local authority’s admission that it is facing
significant financial challenges resulting in noticeable service delivery gaps.
The councillors
opted to alter a Government directive that requires local authorities to
provide them with motorbikes to assist in their duties saying the facility
should not restrict them to motorcycles but should be flexible enough to allow
them to buy cars.
The issue arose
during a debate initiated by Ward 15 Councillor, Ashton Mhlanga, who proposed
the implementation of the motorbike loan facility directive for the City of
Bulawayo.
According to
the motion, Clr Mhlanga whose ward covers Cowdray Park called for the
implementation of the motorcycle loan facility directive, which was issued on
26 September 2024.
“Whereas the
Ministerial Circular dated 26 September 2024, directs that councillors be
availed with a motorbike loan facility for the purpose of enhancing their
ability to effectively perform their duties as elected representatives; and
whereas the circular provides that such loans should be made available to
councillors in a manner that supports their mobility needs and ensures their
ability to serve their wards efficiently,” reads part of the motion. Clr
Mhlanga went further to propose that the local authority implement the loan
facility in an amount that is not more than the market value of a
fit-for-purpose, decent and roadworthy motorbike, suitable for use in the
course of their official duties.
“The loan shall
be repayable within the tenure of the current council term, with clear
repayment schedules to be provided to each councillor. Instead of the council
purchasing the motorbikes on behalf of the councillors, the loan shall be
disbursed as a cash sum to each councillor.
“This cash sum
shall reflect the current market value of a motorbike, allowing councillors to
independently purchase motorbikes of their choice and this resolution must be
communicated to the Ministry and other relevant authorities for implementation
in accordance with the Ministerial Circular of 26 September 2024,” reads the
motion.
Giving comments
on the motion, various council departments, while stating they have no
objection to the directive, raised several anomalies, the main one being the
capability of the councillors to service the loan facility by the time their
terms of office come to an end, considering that their monthly allowance is
pegged at US$75.
“The proposal
is noble, however, the following trends are to be noted: the councillors’
allowances are at US$75 which is not adequate to pay the instalments calculated
on the remainder of their term in office. There shall be a deemed benefit which
is generally taxable as a once-off tax payment and the allowances may not be
enough to cover such.
“Banking Act
and Regulations are against handling such amounts outside the banking system,
as councillors prefer cash. Deductions should not be more than 25 percent of
the emoluments (if we follow the Labour Act or best practice) translating to a
deduction of US$18,75 which entitles the councillor to a loan amount of US$1
125 (before interest) for a full term in office of 60 months,” reads a response
from the council’s finance department. Sunday News