Council rakes in ZWL$73m from joint venture projects
STEPHEN CHADENGA IN GWERU
Gweru City Council has raked in up to ZWL$73 643 509.90 from joint venture projects in the 12 months to July, Business Times can report.
The local authority also pocketed US$20 078 from the projects.
Gweru City Council entered into a deal with Bentach Resources Private Limited to refurbish Kudzanai bus terminus and operate it.
Bentach remit council share on a weekly basis.
Gweru City Council also entered into a partnership with the City of Harare to create Gweru City Parking.
The development was confirmed by Gweru City Council assistant finance director, Michael Verenga.
He told delegates at a budget review meeting that the dividends from the ventures had increased council’s revenue coffers.
“The agreement entailed Bentach to refurbish the rank and manage operations thereafter. Council would have a share of the gross proceeds on a monthly basis,”Verenga said.
He added: “Bentach started operating in August 2021 and has been remitting council’s share on a weekly basis. Between August 2021 and April 2022 Bentach remitted a total of ZWL$9 869 323.46.”
He added: “Beginning May 2022, Bentach shifted from charging informal traders at the bus terminus in ZWL to US$ and council’s share was also remitted in US$. The cumulative remittances in USD between May and July 2022 was US$20 078.”
According to Verenga the joint venture between the city of Gweru and Harare City Parking now known as Gweru City Parking started in April last year.
“So between April 2021 and July 2022 the total remittances from Gweru City Parking was ZWL$63 774 186.48,” he said.
Verenga, however ,said another joint venture between council and Cassas for the refurbishment of Kombayi wholesale market and Ivene commuter omnibus rank is still to pay dividends as the projects are yet to be completed.
Gweru United Progressive Residents and Ratepayers Development Association Trust executive director David Chikore told Business Times that council’s joint ventures were welcome as part of moves to increase revenue inflows.
“This is a welcome move by the council to look for alternatives to improve its revenue inflows. The local authority needs to look beyond ratepayers to improve its income,”he said.
Chikore, however, said the council needed to make periodic declarations of the remittances from the joint ventures to ensure transparency and accountability in the management of the partnerships.
