THE RESPONDENT

Municipal Council pledges to settle debts amidst controversy over government spending

 


Shinyanga Municipal Executive Director Mwalimu Alexius Kagunze. Photo: Shinyanga Press Club

By Adonis Byemelwa

The Shinyanga Municipal Council has made a significant commitment to addressing its financial obligations by pledging to settle all outstanding debts owed to suppliers and contractors who contributed to projects during the 2023/2024 fiscal year. This assurance was delivered by Mulokozi Kishenyi, the council’s Treasurer, on August 29, 2024, during a special meeting of the council’s board.

Kishenyi spoke on behalf of Municipal Director Mwalimu Alexius Kagunze. He emphasized that the council aims to clear these debts within the current fiscal year, which began on July 1, 2024. “We are determined to settle all debts promptly,” Kishenyi said, underscoring the council’s commitment to financial transparency and responsibility.

Mwawaza Councilor Juma Nkwabi of expressed frustration during the meeting, questioning why service providers are still waiting for payment. He highlighted that these providers used their capital to complete various projects, only for their payments to be held in a trust account pending project completions.

“The delay in settling these payments is unjust,” Nkwabi said. “Service providers should not have to wait while their funds are tied up.”

In closing the meeting, Shinyanga Municipal Mayor Elias Masumbuko urged immediate payment of these outstanding debts. He commended the councilors for their impressive revenue collection efforts, which have surged from Sh2 billion in 2020 to Sh5 billion this year.

Masumbuko praised the council’s achievement, emphasizing that this increase in revenue was accomplished without raising taxes or introducing new revenue sources.

The pledge to address these financial obligations comes in the wake of criticism from Anatropia Theonest, the Special Seats MP from Karagwe District in Kagera Region. Theonest has been vocal in her condemnation of the Finance Ministry’s budget priorities.

Known for her unapologetic stance, Theonest has accused the ministry of misallocating funds and favoring recurrent expenditures over essential development projects.

In a recent critique in May 2024, Theonest highlighted what she perceives as excessive spending on vehicles for district councils. “A huge chunk of funds is used to buy vehicles worth Sh880 billion that do not show value for money,” Theonest remarked sharply. “We are spending and creating jobs for the Japanese who sell us those cars while doing little to salvage our nation.”

Theonest’s remarks have sparked a broader discussion about budget allocation and government spending. She questioned the competence of planning officers in the Finance Ministry, suggesting that they plan more for expenditure than for meaningful development. “The government’s priorities are misplaced,” she asserted. “Why not use common vehicles? The V8 is very costly to run, and we are set to collapse the economy altogether.”

She proposed a significant shift in budgeting priorities, recommending that at least 68% of the budget be dedicated to development projects, with the remaining 32% allocated for recurrent expenditures. Theonest's critique has resonated on social media, where many have praised her as a dedicated defender of public interests, despite her precarious position within her party.

Theonest’s criticism drew attention to troubling trends in budget allocations, particularly the substantial funds designated for vehicles. For instance, the 2019-2020 budget allocated Sh54.48 billion through PO-RALG for vehicles, while the 2020-2021 budget set aside Sh29.83 billion for 238 vehicles. This trend continued with allocations such as Sh2.8 billion in 2021-2022 and Sh500 billion in 2022-2023 for regional administrations.

“The district commissioner’s vehicle, the Regional Commissioners, and many others, what do they do with these vehicles?” Theonest questioned. “We buy them for what… we are a country with planners at the finance ministry sleeping on their jobs.”

The scale of government spending on vehicles was further underlined by Theonest, with an annual expenditure of Sh558.4 billion on vehicle purchases, fuel, spare parts, and maintenance. Finance Minister Mwigulu Nchemba addressed this issue during the presentation of the 2022/23 National Budget in Parliament. Nchemba acknowledged the concern and proposed a transformation in the government’s vehicle management system.

Nchemba suggested that vehicles be lent to qualified government officials, who would then bear maintenance costs themselves while receiving proper fuel provisions. “In this new approach, officials would bear maintenance costs themselves while receiving proper fuel provisions,” Nchemba explained, aiming to address the inefficiencies highlighted by Theonest.

As Shinyanga Municipal Council moves to settle its debts and address local financial responsibilities, Theonest's critique serves as a backdrop to a larger debate on the effective use of public funds. The contrast between Shinyanga’s efforts and national spending controversies underscores the ongoing challenges in balancing fiscal responsibilities with development needs.


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