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    Thursday, 20 July 2017

    Chiredzi RDC in worst financial crisis



    MORRIS BISHI
    CHIREDZI BUREAU

    CHIREDZI – Chiredzi Rural District Council is facing its worst financial crisis since the introduction of multiple currencies due to failure by stakeholders to settle their rates in time.
    Addressing a full council meeting on Thursday Chiredzi RDC Chairman Edward Matsilele said his council is facing viability challenges and so far they had collected 30,59% of the budgeted income from January to June 2017. He said this is the worst scenario ever experienced by council from the time multi currency was introduced.
    He further said of the budgeted $271 058 for the month of June only $77 900 was collected which is far short of council`s monthly requirements.
    "The finance department is facing one of its worst years since the multiple currency era. Council is currently failing to fund recurrent expenditure as it is not collecting enough to sustain budget operations. Normally council would start to face viability challenges in the months of September or October but this year the challenges have begun quite early in June which spells a lot of trouble ahead. Council is supposed to collect about $271 058 every month, but during the month of June only $77 900 was collected"
    "As at 30 June, council had collected $994 911 which is an annual performance of 30,59%. However the performance for the period from January to June is 61,7% from an anticipated income of $1 626 349 for the period. Expenditure figure for the period stands at $926 421, which is a percentage of 28,54 from budgeted expenditure for the period which was estimated at $1 622 551 and employment costs up to Mat stands at $372 897 whilst $105 000 funded capital costs" said Matsilele.
    Matsilele said the picture might look gloomy for a council which is ranked among the best run councils in the country.
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    Item Reviewed: Chiredzi RDC in worst financial crisis Rating: 5 Reviewed By: Staff Reporter
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