By Takura Zhangazha
The outgoing Minister of Local Government, Rural and Urban
Development, Ignatius Chombo two days ago issued what amounted to a
controversial edict. In it he instructed all local authorities to essentially
write off all the service provision debt that has been accrued by residents and
ratepayers since the introduction of the United States dollar to council billing
systems.
The instruction from central to local government is controversial
mainly because it was issued a week before the holding of harmonized elections and
also after Minister Chombo had dissolved
all elected councilors and replaced them with appointed commissioners. In some circles it has been described as an 'electoral' debt relief.
In announcing his decision, the minister cited sections of
both the Urban Councils Act and the Rural District Councils Act. The legality
of this is perhaps something that some residents and ratepayers may take up
with our courts of law, but the long and short of it is that in this case, it’s
the politics that count. Moreso given the fact that the edict is probably seen
from a Zanu Pf perspective as being a vote acquisition strategic move for most
urban areas. (I am however sure that they know that it won’t ultimately win
them seats but may marginally increase their vote count in MDC strongholds.)
The MDC-T has in turn politically defined the move as a vote
buying gimmick that betrays what it calls ‘desperation’ on the part of Zanu Pf.
The Newsday editorial also defined the
move as ‘populism at its worst’ while the Daily News one called the move
catastrophic. The Herald was the only paper to have a front page headline story
on the issue thought it is yet to write an editorial on the same.
There is however a socio-economic mechanics to the
announcement, particularly if effected. Ever since the ‘dollarisation’ of the
Zimbabwean economy, major parastatals and government departments converted what
was owed them by users of their services into US dollars. This was before the
full formal expansion, availability and integration of foreign currency
for ordinary citizens. As a result payment of utility bills, be they
for electricity, council rates/rentals or even medical aid was and remains
erratic nationally. This is why in most instances every other quarter one parastatal
or local government authority would either announce or re-emphasize what they
referred to as ‘payment plans’ for end users of their services.
Such a development
indicated an inability of the said government related organizations to re-coup
their revenue and not for lack of trying. Closure of water and electricity has
been fairly commonplace even with the effecting of ‘payment plans’ which a good
number of citizens can still not meet or strictly adhere to. The end effect has
been that either way, even if a bill states an amount owed, it would still not
be paid either in full or in terms of the payment plan. Either way therefore the
councils or parastatals even with payment plans have been unable to recover a
greater percentage of what they are owed.
The big factor in all of this, apart from the inability and not
intransigence of a majority of ratepayers, has been the changeover from the
Zimbabwe dollar to the US dollar billing system. This left many residents with
debts that they cannot pay in the immediate or the long term. The blame for such a state of affairs lies
with those who, in central government were in charge at the time of the
economic collapse of 2007. It also however lies with those that joined
government in the aftermath of the Global Political Agreement (GPA) and who
have since failed to resolve the matter. And this pronouncement by Minister Chombo will essentially relate to
a bit of mathematical assumptions.
It is generally agreed that most
of our urban and rural district councils are living from hand to mouth particularly
where it comes to paying salaries of employees and immediate running costs for
water treatment as well as refuse collection. Now the jury may be out on the
direct impact of not having revenue for
July 2013 will have on councils but the bigger issue is about the debt owed
prior to this month (and for many years). The onus of proving this however
resides with both the relevant ministry and the local authorities in question.
What is however forgotten is that the debts are cumulative.
Whatever one owes does not mean one is not charged for services utilized for
the month in question. This also means that the councils do not stop charging
residents and ratepayers in the next month for services rendered. What is lost
therefore is essentially one month of revenue which was in any event not going
to be paid in full. Therefore either way, whatever payments were being made
prior to the announcement local councils have revenue in their coffers.
It is the continual large debts that are owed by residents over
the years that will not be reflected on the bills come next month. And that can
only be a good thing for social and economic justice. No matter who
propositions it. The government, which
made this pronouncement, has an obligation to meet the shortfall that will
emerge as a result of its directive. It will have to foot, among other costs, the
wage bill of council workers for this month.
In the final analysis, this is a matter that remains
controversial but talks to the challenges residents and ratepayers have been
facing. That it has been politicized by an outgoing Zanu Pf minister is cause
for concern, but that does not take away its resonance with a majority of
economically disadvantaged citizens in various urban and rural district
councils. It should have been done well before the elections by elected councilors
and not by way of edict by a minister.
*Takura Zhangazha writes here in his personal capacity
(takura-zhangazha.blogspot.com)
No comments:
Post a Comment