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Sikhumbuzo Moyo, [email protected] 

Bulawayo City Council is unable to utilise $7 billion allocated for water system repairs due to service providers’ refusal to accept local currency payments. The fund, which was received from the Government in December last year, remains untouched in the council’s bank account.

The funds are intended for the rehabilitation of Mtshabezi, Umzingwane and Inyankuni pump stations.

As of January 2, 2024, the fund was equivalent to US$1 million based on the official exchange rate of 1: 6 812. However, due to the local currency’s depreciation, its value has decreased to US$391 200 at the March 7 exchange rate of 1: 17 894.

In an interview at the council chambers on Thursday soon after a meeting with the Minister of Local Government and Public Works, Winston Chitando, Bulawayo Mayor Councillor David Coltart confirmed receipt of the money and that it was still lying idle in council accounts.

“It is correct that the money has been disbursed and is sitting in the city council bank accounts. The problem is that it is in local currency. We have gone out to contract with private companies for some of the work that needs to be done. 

“As you may appreciate we don’t manufacture these large pumps within the country, they have to be imported and it’s the same with the booster pumps.

“The problem is companies are asking for forex because they need that themselves and as we all know the local currency has greatly depreciated in the last month so the goalposts are continuously moving for us. Yes, we have that money but it’s difficult for us to use it,” said Clr Coltart.

When questioned about not utilising the Reserve Bank of Zimbabwe’s auction floors for foreign currency, he clarified his ceremonial role and directed technical matters to the town clerk.

“You need to speak to the chief executive officer of this council. I am a ceremonial mayor and I am not involved in the day-to-day management and running of the council business,” he said. 

Mrs Nesisa Mpofu, the Bulawayo City corporate communications manager, outlined the procurement process for foreign suppliers, which involves direct payment through the Reserve Bank of Zimbabwe.

“The city through the Water Technical Committee is currently undergoing the procurement process for some of the interventions proposed,” said Mrs Mpofu.

This is not the council’s first lapse in utilising Government funds, as it was recently disclosed that $2,3 billion allocated for road rehabilitation by the Zimbabwe National Road                    Administration (Zinara) went unused for the 2023 season.