City reduces bank accounts

Blessing Malinganiza Herald Reporter
Harare City Council has complied with the Government directive to reduce the number of active bank accounts it has, and is now operating five transaction accounts, while a few are dedicated to bill payments.

Council had over 40 bank accounts, and as a condition for approving the city’s 2016 budget, Local Government, Public Works and National Housing Minister Saviour Kasukuwere ordered the city to reduce its bank accounts.

According to the recent minutes of the Finance and Development Committee, councillors heard that the closed accounts were maintained in read only status.

“The closed accounts are maintained in ‘read only’ status, pending the finalisation of reconciliations before December 2016. However, council has since reduced the number of active bank accounts and is operating five transaction accounts while the rest are dedicated on bill payment accounts,” reads the minutes.

The committee discussed the matter and underscored the need to implement strategies that resulted in the improvement of councils’ financial position.

Acting finance director Mr Tendai Kwenda reported that the Ministry of Local Government, Public Works and National Housing had conditionally approved the 2016 City of Harare budget.

The city was told to bring its employment costs in line with 30:70 employment costs to service delivery ratio by the end of the year.

Council was also ordered to reduce its permanent overdraft facility from $1,5 million as the interest is too high “for ratepayers to carry”.

The city was also asked to show the marked improvement in revenue collection as indicated in its budget.

“The city will take a final decision on how many bank accounts it really needs and close unnecessary accounts,” reads the minutes.

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