Gaborone City Council (GCC) has spent at least P30 million to pay terminal benefits for former industrial class workers who have been converted to permanent and pensionable government employees.
City Mayor Haskings Nkaigwa disclosed at a full council meeting on Monday that the approved budget for the 2013/14 financial year is P253, 929,060.00 and P98, 012,325 has been expended already.
The sum spend is 39% of the total budget.
“P30 million was expended on the terminal benefits of former industrial class employees who have converted to Permanent and Pensionable status.
This was in pursuit of the move by government to normalise the status of its entire employee,” Nkaigwa noted.
The mayor was speaking during his update on the status quo of the council.
He said the amount was not budgeted for and this has delayed the implementation of project envisaged for the current financial year.
He said paving of roads, maintenance of street lights amongst other projects will be affected.
He suggested that since the money was not budgeted for the Central government must refund the Council.
“We are still waiting for the release of such funds from Central government.
I am informed that the council has received P67, 047,499.00 as Revenue Support Grant from the Ministry and another one is expected before the end of September 2013.
This will ease our cash flow but the Council shall continue following up on the reimbursement,” he noted.
In terms of revenue collection, he said GCC collected P21, 572,652 against the targeted P30, 000, 000.00.
Adding that a total of P18, 329, 877 was collected over the counter by GCC, while P1, 970,366 and P1,272, 410 were collected by FNBB and Barclays banks respectively.
“I am informed that 1,200 demand letters have been issued to defaulters.
These were facilitated by our partnership with Botswana Postal Services,” Nkaigwa said.