Mayors bemoan inherited debts, revenue difficulties

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Mon, 1 Dec 2014 Source: The Post Newspaper

Mayors in Fako Division of the Southwest Region have bemoaned the huge debts bequeathed to them by their predecessors.

The Mayors were complaining to the Fako SDO, Zang III, on Monday, November 24, during a conclave that brought together Mayors, Municipal Treasurers, Divisional Treasurer, Taxation boss and the Regional Chief of the Council Support Fund, FEICOM.

This gathering, the SDO said, was aimed at giving an opportunity for the Mayors and Municipal Treasurers to express the difficulties perturbing them from raising revenue for the Government.

From the exposés of the Municipal Treasurers and the interjections from Mayors, it was noted that most Mayors inherited huge debts, which have been a stumbling block to raise revenue and meet the needs of their different populations.

The Mayor of the Buea Municipality, Patrick Ekema Esunge said his Council owed the Taxation Department, FCFA 42 million, the National Social Insurance Fund, FCFA 38 million, HYSACAM, FCFA 42 million and staff salary arrears amounting to FCFA 68 million and some 113 contractors.

He said from their findings, it was realised that the above debts had already been cut off from staff salaries. But these sums, he said were never paid to the supposed beneficiary institutions. “What happens if the Buea Council has to pay these sums again?” Ekema asked.

The Mayor of Idenau, Gabriel Tonde stated that he met the Idenau Council with a huge debt of over FCFA 350 million. He said of the above sum, FCFA 110 million was owed to Taxation alone.

The Mayor of Limbe I Council, Rodanny Mbua, on his part, said his Council’s account has already been sealed on several occasions because his Council owes the Taxation several millions.

Mayor Daniel Mokundo said there was the need for Councils to be involved in the assessment and collection of the taxes that are destined for the Councils. He said, as per the law, this exercise is done solely by the State Taxation Department and at the end, the Councils realise very little.

Mokundo also talked of difficulties his Council is facing in making money from the commercial activities at the Tiko wharf. “It is like a no go zone.”

Mayor Mbua of Limbe I and his colleague of Limbe III told the SDO that their Councils could do more, but they were powerless in the face of certain situations.

But the SDO insisted that they have all the powers at their disposal to break new revenue, generating grounds and make more money that can be used to meet the needs of their populations.

“If you are powerless, then why did you struggle to be the Mayor? If you are powerless, then you better resign,” Zang told the complaining mayors.

SONARA Owing City Council The Government Delegate to the Limbe City Council, for the umpteenth time, stated that SONARA was their highest tax payer. But regretted that since, 2012, they have not “received a dime from SONARA.”

But the SDO indicated that SONARA pays its taxes direct to the national coffers in Yaounde and the National Treasury, in turn, dispatches what is meant for the City Council to the Regional treasury in Buea.

Motanga was still not satisfied. He said the delay of the money from SONARA, which he said, “makes up 70 percent of our budget” could make things very difficult for the Council, if the problem is not resolved.

The Fako SDO promised to assist the Limbe City Council, discuss the problem with the Minister of Finance so that an agreement can be reach where SONARA, might, henceforth, pay what is due to the Limbe City Council directly to this Council’s account rather than routing it through Yaounde.

The SDO recommended that the Mayor of Buea reinforce his revenue collect efforts at the Muea market and Mile 17 stretch, where he said, the Council can raise up to FCFA 1 billion.

To the City Council, he said there was a need for the building permit exercise to be made easier for those building to be able to pay.

The Municipal Treasurer of the Limbe City Council had noted that the process of paying building permits in Limbe was so slow that the potential permit payers usually prefer to circumvent the whole drag, bribe the officials and carry on with their building works, than wait till when ever a Commission will have to issue them one.

Zang said the number of houses built in Limbe were a big source of revenue, where the Council can make huge returns from the issuance of building permits.

Meantime the Regional Chief of FEICOM, Nkwetta nee Tanyi-Mbianyor, said she was happy that the SDO had taken the drive to enable the Councils find more ways to make money and reduce their dependence on FEICOM.

She, nevertheless, said, FEICOM remains committed in its mission to help the Councils meet the people’s needs.

Source: The Post Newspaper