…No tariff subsidy from Central Gvt to help local authorities but allotted funds: Mutare Mayor  

Ngoni Dapira

MUTARE vegetable vendors yesterday (Wednesday) clashed with City of Mutare municipality officers and levy collectors defying the recently increased market fees of US$1 per stall being charged for only selling two-hours a day.

The vendors who resisted paying the new fees were mostly vegetable vendors who said the new fees effected on August 1 were unworkable under covid-19 lockdown restrictions, which have reduced their market selling hours and consequently their income as well.

City of Mutare was forced to immediately call for a meeting with the executive members of the Sakubva Produce Market Vendors Association to avoid skirmishes at the decentralized vegetable markets in the high density suburbs of Dangamvura at Dangamvura Ground, Chikanga at the Sports Complex and in Hobhouse. Singing protest songs like, ‘Povo yaramba’ (the masses have rejected), ululating and dancing at the Chikanga vegetable market, the vegetable vendors refused to pay the stall fees and defied attempts by the municipality officers to confiscate their commodities.

Because of the global covid-19 pandemic the trading market hours have been cut to reduce large crowds and risk the spread of the virus. In Mutare, when the vegetable markets were decentralised from the Sakubva Produce Market in April, the trading hours were from 6am to 10am, but after covid-19 cases started increasing in the province since June, the hours were reduced from 6am to 8am.

In Chikanga, vendors fumed that it is the same story of siphoning and exploiting the poor with no consideration of the socio-economic environment. A lady who refused to be named pointed out that there has been a broken down sewage that has not been attended to for quite some time at the market and refuse collection is unpredictable, but all they were prioritizing is increasing and collecting revenue.

The lady who sells carrots and onions refuted that they are not earning US dollars and there is need for fair pricing under covid-19 lockdown restrictions. “Council is not effectively doing its job to control people to ensure social distancing and this market is a vegetable market but we now have poultry vendors here. All they want (the local authority) is money and do not care about us. We are suffering in this covid-19 era because of limited trading hours and we have been waiting for the Government relief fund to cushion us but in return we are being over charged,” said the lady who requested anonymity.

Sakubva Produce Market Vendors Association chairperson Taurai Mukono said they are not against increment of tariffs by the local authority but are merely requesting for reasonable levies given the socio-economic environment in the country and the limited working hours at vegetable markets.

Taurai Mukono

“With the way things are in the country, the fees are too much. We are aware Council needs revenue but if they charge between $23ZW up to $40ZW this is more reasonable. We have been persistently paying our levies, but there is little being done to improve our operating environment, which has been the case even before covid-19 came to existence. The local authority says the money collected goes into a miscellaneous account, but surprisingly they prioritise investing it in other services, which is wrong,” said the Sakubva Produce Market Vendors Association chairman.

He added that the levies were not pro-poor given the profit margins that most vegetable vendors get each day. “What we are saying is the fees are not pro-poor. Our vendors are selling for instance carrots for $5 ZW  and vegetables $10 ZW, so for a US$1 stall fee they need to sell about 40 packets of carrots and eight bundles of vegetables in just two hours of market trading time under lockdown. This is very unreasonable. From a fee of $23 ZW to around $80 ZW, is not fair given that we do not sell for a full day,” said Mukono during the demonstration at the Chikanga Sports Complex market.

Mukono however said the US$0.80 or equivalent in bond notes according to the official exchange rate, which they settled for in their engagement meeting at the Town House is still not sympathizing with their plight, but unfortunately it was the best they could negotiate.

While, both the local authority and the vendors cited their justifiable reasons which are all pinned on economic meltdown austerities, the million dollar question left hanging was, where is Central Government in all of this uproar, when local authorities and the public, clearly need covid-19 relief funds to survive? In a telephone meeting interview with Mutare Mayor Blessing Tandi after the engagement meeting with the vendors association, he said although they had reached a compromise of paying an equivalent of US$0.80, their hands remain tied as a local authority as they are in dire need of service delivery finances in the absence of fiscal remittances.

He said most funds that came through this year from the Ministry of Local Government, Public Works and National Housing through Treasury are allocated funds for specific projects such as the devolution fund, the Public Sector Investment Programme (PSIP) funds and the covid-19 response fund towards refurbishment of the Mutare Infectious Disease Hospital (MIDH). Mayor Tandi said no subsidy is coming towards tariffs to cushion the residents and boost the municipality coffers to enable sustainable service delivery.

In January the permanent secretary for Local Government, Public Works and National Housing Ministry, Zvinechimwe Churu confirmed that most major projects under the PSIP countrywide had been stalled due to inadequate funding, but said the situation is expected to improve within the next 24 months. He said they had however already appealed to Treasury to increase funding for all infrastructure development projects, but evidently this has fallen on deaf ears, as there have not been any funds disbursed to the local authorities as revealed by Mayor Tandi.

“Our Government is broke (insolvent) and we are surviving on shoe string budgets to sustain day to day service delivery concerns in the city. Disbursement of inter-governmental funds only takes place depending on the availability of funds at Treasury. At times the funds come late for projects to be completed in the current year. Yes, we can say the Government is turning a blind eye on local authorities as they are aware of our distresses but doing little to help us especially under covid-19 lockdown measures, so these new tariffs help us remain sustainable and operational,” he said.

Mayor Tandi said the next best option as a local authority after their incumbent audit is completed, is to borrow funds, but for now they are under a shoe string budget and failing to make ends meet, which is why they have resorted to the 2020 supplementary budget increased tariffs.

City of Mutare Mayor Blessing Tandi

“The reality is if residents do not support us by paying their dues, we will plunge because the hyper-inflationary environment is greatly affecting us. Our costs are on the increase and our suppliers are demanding for foreign currency or for us to pay with the local currency at highly inflated rates. On the other hand people are dumping money after selling their foreign currency on the black market which continues to offer better rates than the official exchange rate. We are charging sub-economic tariffs and this is a reality, which is why we also introduced the double billing system to help us raise foreign currency,” said Mayor Tandi.

City of Mutare in July during the 2021 pre-Budget consultations proposed a US$33 million 2021 budget to meet service delivery concerns. This was approximately valued at $2.5 billion ZW, using the official foreign exchange auction rate of US$1: $77 ZW in July. A massive upsurge compared to the 2019 budget proposal of $31.1 million ZW, which portrays how hyperinflation in the country has skyrocketed within a year.

According to TradeEconomics the annual inflation rate in Zimbabwe rose to 837.5 percent in July from 737.3 percent in the prior month. In the budget proposal, sewage and water tariffs for residential areas remain the same as effected in March, but all commercial and industrial sewage and water tariffs as well as miscellaneous tariffs were increased ranging from 120 to 350 percent.

“The informal traders actually agreed to this 350 percent increase in the pre-budget consultation but maybe it is the US$1 pricing that is scaring them. All we have done is peg our prices in US dollars and hinge them to the fluctuations of the official exchange rate so that we do not make losses,” said the Mayor.

United Mutare Residents and Rate Payers Trust (UMRRT) projects manager Edson Dube said the plight of the vendors was genuine and not stage managed, urging the councilors to take the bull by its horns and face the issues raised with a human face, in view of the covid-19 lockdown restrictions crisis in the country.

“If you charge a US dollar price on residents without meaningfully engaging them you get a backlash, which is what happened when the residents opposed. Their (local authority) policies are not pro-poor and they are chasing making profits which is further burdening the residents, without considering their plight to be cushioned under covid-19 lockdown regulations coupled by a poor performing economy,” said Dube.

Municipal budgeting is conducted in accordance with the Urban Councils Act (Chapter 29: 15) and the Public Financial Management Act (Chapter 22: 19). Section 219 of the Urban Councils Act (3) (a) and (b) gives residents and ratepayer’s powers to object proposed tariffs for reconsideration. This provision is further strengthened by Section (288) (2) (a) which stipulates that, “When the estimates presented in terms of subsection (1), the council shall ensure that copies of the estimates are forthwith made available for inspection by the public.”

Dube added that the local authority did not take into consideration that the residents and business are equally struggling. “It is not only the local authority that has been affected by the economic meltdown in the country, but residents are also suffering,” said Dube.

Vendors and customers going about their business yesterday during the clash at the Chikanga Sports Complex market.

A Constitutional law and human rights law expert Dr Admark Moyo said citizens have multiple alternatives to hold councilors accountable. “First they can drag Council to court and seek a reversal of decisions that are unjust on the citizens. Secondly, they can publicise their outrage through media, including social media platforms, then thirdly, people have a right to demonstrate in the streets and to go to the city council and present petitions. If something like this happens there should be media coverage of the event and the citizens can threaten to vote everyone (councilors) out of their terms for betraying public trust,” said Dr Moyo.

City of Mutare public relations officer Spren Mutiwi added that contrary to he views that they are not a listening municipality, their actions to review to US$0.80 and engaging the vendors association proves otherwise.

“Council is very sensitive to the plight of residents and the poor and elderly in general, that is why all increases of social and health related fees were between 120 and 150 percent. We are a listening local authority which takes engagement seriously no wonder why we reached a compromise with informal traders. We consulted all the key relevant stakeholders, but it is the economic upheaval at play which is frustrating residents,” said Mutiwi.

Mutiwi added that there is public misconception that payment in foreign currency is compulsory citing that it is optional and they are only operating in the confines of Statutory Instrument 85 0f 2020, which states that, ‘Any person who provides goods or services in Zimbabwe shall display, quote or offer the price for such goods or services in both Zimbabwe dollar and foreign currency at the ruling exchange rate.’

According to the statement issued by the Municipality last week, miscellaneous tariffs will be based in foreign currency, but residents can still make payments using local currency at the prevailing official rate. However, parking, burial and clinic fees remain pegged in local currency, but have been increased by 300 percent, 120 percent and 150 percent respectively.

“All tariffs, commercial, industrial, institutional and residential, will convert to USD with effect from October 1, 2020. Until the 1st of October 2020, no changes will be made to all residential tariffs. All commercial and institutional billable tariffs have been increased by 350 percent with effect from the 1st of August 2020 pending implementation of 1st of October 2020 US$ tariffs,” read the statement.

According to the resolutions made in the budget consultations in July, water will be pegged at US$0,37 per cubic metre ( first band), while rates will maintain the 2019 valuation roll figures.