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Residents say no to forex charges
Combined Harare Residents Association (CHRA)
February 16, 2009

The Combined Harare Residents Association (CHRA) is deeply concerned by the reports that it has received to the effect that there are some residents in high density areas who are being forced to pay rates in foreign currency. CHRA is reliably informed that council offices in Mabvuku, Glenview and Highfield are rejecting payments in the local currency and they are demanding payments in either the South African Rand or US$. Residents reject such impositions as it is reflective of daylight robbery on residents who are already struggling under the harsh economic environment.

Residents have complained that the City of Harare is already effecting the forex charges that are outlined in the budget that is still yet to be announced. Moreover, residents were shocked to discover that the City of Harare actually intends to announce the budget which was drafted without even consulting residents. This is in direct conflict with the Urban Councils' Act (Chapter 29:15) which states that the Council should consult residents on its proposed city budget to get their contributions. The Council is then supposed to draft the budget (inclusive of the residents' contributions) and flight the budget in the daily local newspaper twice after which residents will be given thirty days to either approve the budget or lodge their objections. This process has not been followed and that means the budget that the City of Harare intends to announce is just a proposal to residents; a proposal that Council is supposed to present to residents for consultation purposes first before they can even think of implementation.

In addition to that, CHRA has information to the effect that there was some confusion last week at Town House when the full Council held a meeting to deliberate on the issue of charging residents in foreign currency. Most Councilors were against the idea of the budget being announced because they had not yet approved it as Councilors. The Councilors questioned their relevance in Council if they were being excluded from important processes like the budget formulation process. A few of the Councilors supported the idea of charging all residents in foreign currency but were not clear on how much residents should be charged. Questions were also raised by the Councilors on the issue of residents who had already been forced to pay their bills in exorbitant foreign currency amounts that are up to US$34. The City Treasurer is said to have defended this position saying that Council would credit the money to the accounts of these residents. This was an indirect admission by the Treasurer that residents are already being charged in foreign currency and that they are being overcharged.

CHRA is not happy with the irregularities that are being reflected by the City of Harare in terms of the yet to be announced budget. Firstly, the then defacto Acting Minister of Finance, Patrick Chinamasa, had pointed out that residents in high density areas would have the option of paying their rates in ZW$ and yet Council is said to be rejecting the local currency. Secondly, the City of Harare has an explanation to make to residents as to how they are getting the exorbitant figures that they demanding from residents in foreign currency; not to mention the fact that Town House has not been serving residents with bill statements for almost 12 months now and municipal service delivery has not improved. Most residents do not have access to foreign currency since they get their income in ZW$. Moreover, there are indications that the budget is just being imposed without the approval of most of the Councilors. It is against this background that residents are rejecting the dollarisation of municipal services. Residents demand extensive consultations before the budget can be effected.

CHRA remains committed to the residents' cause and advocating for good, transparent and accountable local governance as well as quality and affordable municipal services.

Visit the CHRA fact sheet

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