Friday, May 07, 2010

Banda’s pronouncements reduce Copperbelt councils’ revenue

Banda’s pronouncements reduce Copperbelt councils’ revenue
By Namatama Mundia
Fri 07 May 2010, 04:00 CAT

COUNCILS in the Copperbelt Province are having difficulty collecting rates and rentals because tenants are refusing to pay following President Rupiah Banda’s recent pronouncements.

The town clerks from five Copperbelt councils that include Kitwe, Ndola, Chingola, Luanshya and Mufulira complained to the parliamentary committee on local governance, housing and chiefs’ affairs on Wednesday that their work had been made difficult by the recent pronouncements such as the directive to stop bailiffs from seizing property of defaulters and the sale of Itawa Flats in Ndola.

Late last month during his media briefing in Kitwe, President Banda said he could not understand the criteria used by councils to evaluate the properties which were bought under the empowerment policy in 1996. President Banda said:

“One wonders whether this is not a calculated political move by the PF councils to create a wedge between the people and their government. Some house owners who failed to pay the increased rates have even had their household goods such as TV sets, furniture and other such items confiscated by councils, depriving them of their conform. This is unacceptable and I advise all those citizens affected to report such incidents so that we can deal with these people.”

But Mufulira town clerk Charles Mwandila told the parliamentary committee that the several pronouncements had adversely affected the running of the council. He said it was very difficult for councils to operate without political will.

“It is important to guard against such pronouncements because people are refusing to pay…some members of the public are even demanding for refunds,” Mwandila said.

Mwandila revealed that Mufulira Municipal Council is owed about K9 billion by various corporate and individual debtors.

At this point, committee acting chairperson Mwimba Malama, who is Patriotic Front Mfuwe member of parliament, observed that Mufulira was not the first council to complain that the statement by President Banda had affected the operations of local authorities and advised the councils to follow what the law stipulates.

“Some statements can be mere statements but it’s important that you follow the law. Sometimes some people say certain things to gain political support,” he said.

And Ndola town clerk Charity Mpande said people have developed a negative perception towards paying their rates and rentals from the time President Banda made his statement.

She said the collection efficiency of rentals have gone down in the past few weeks because residents did not have a good regard for the local authority following President Banda’s directive to sell council houses.

“We have laws in place. The ratings Act, premises Act and those laws are the tools we use but when these laws are thrown away, it’s very difficult manage the councils,” Mpande said.

She said Ndola City Council has since stopped the issuance of warrant of distress to defaulters because of the impression which President Banda caused. Mpande urged Itawa Flats tenants to ensure that they settle their rentals in full before purchasing the flats.

She said Ndola Council was owed about K31.3 billion as at December 2008 by various debtors while the local authority had unpaid creditors amounting to about K19 billion during the same period.

And Kitwe town clerk Ali Simwinga made the same observation when he appeared before the committee.

Simwinga, whose council was owed a sum of K27.8 billion by various corporate and individual debtors, said measures put in place to collect the money had been thrown off balance by numerous political pronouncements.

Simwinga submitted that his council had since 2004 tried to come up with strong measures to ensure that all collectible revenues were collected.

“Realistic targets for debt collectors had been set after the new valuation roll and bailiffs had been engaged to force debtors into paying promptly. However, these measures have constantly been thrown off balance by numerous negative political pronouncements such as the one stopping the council from engaging bailiffs as well as the ministerial directives such as the one in 2007 requiring the council to give a 50 percent rebate on all outstanding owner rates debts and a further five percent discount for those paying in full,” he said.

Simwinga said the effects of such pronouncements have been to disadvantage the council.

Chingola and Luanshya town clerks Patrick Telishi and Andrew Mwanakulanga also told the committee that the political statements had affected their operations.

However, committee members said the issues raised by the local authorities would be directed to the Ministry of Local Government and Housing for response.

Recently, former president Frederick Chiluba told tenants at Ndola’s Itawa Flats that they should give President Banda a vote in next year’s elections.

Chiluba, who was accompanied by his wife Regina, former MMD provincial chairman Terrence Findlay, MMD Ndola district vice publicity secretary Alex Mubanga popularly known as Shimpundu pankoloko, told the tenants that if they voted for PF-UPND Pact leaders, they would never see development in the nation.

And on February 14, 2010 in Ndola, President Banda accused PF-UPND-controlled councils of stealing billions of kwacha from property rates and levies without providing services such as roads.

“I have listened to your cries, you tenants of Itawa Flats and the Chinese Housing Complex in Ndola, especially that the council has been stealing billions of kwacha without providing services. Why charge you more when you stay in houses that are cracking thus putting your lives in danger?”

President Banda asked. “But they will not steal anymore since they are not in government and soon we shall be moving to Kitwe because similar incidents are happening and we shall thoroughly audit them to find out how much they collect as rates from the mines without doing roads.”


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