Kasungu District Council’s Finance Service Committee said its first-quarter financial report has revealed significant gaps in revenue collection, a development threatening the achievement of its projected revenue target.
Speaking on Wednesday during a full council meeting, Chairperson of the Finance Service Committee, Councillor Bridget Kaziputa, said the council projected to raise K 31 Million through market fees between April and June this year but only collected K 3 Million.
She attributed the poor performance to some vendors neglecting to pay market fees due to poor market standards and inadequate facilities, while others allegedly evade payment because of connections with political and local leaders.
“Besides mobility challenges for local revenue collection teams, we are also experiencing inadequate enforcement for non-compliance, as the by-laws have not yet been approved by the Ministry of Justice,” she said.
In total, the council has collected K 292 Million out of the K 951 Million projected in local revenue, representing 31 percent of the annual target, which is comprised of rental income, market fees and plot sales.
Commenting on the development, Kasungu District Commissioner Dr. Lawford Palani described the situation as worrisome, arguing that it will affect the implementation of development projects.
However, Dr Palani expressed optimism that the council will improve its revenue collection performance, disclosing that it has introduced modern revenue collection systems that are currently being piloted.
“The council relies on locally generated revenue to provide services to communities. We have taken note of the gaps and we are addressing concerns raised by vendors while also enforcing regulations,” said Dr Palani.
Markets currently piloting the e-ticketing system include Nkhamenya, Chinkhoma and Katenje.
According to the first-quarter financial report, Kasungu District Council has recommended improving market infrastructure through reformed Constituency Development Funds (CDF), as well as following up with the Ministry of Justice on the approval of by-laws to strengthen enforcement and compliance.
