The Harare City Council has had access to foreign currency at the Reserve Bank of Zimbabwe (RBZ) shut down since the advent of the foreign currency auction system.
This has worsened its battle to provide water treatment chemicals even worse as it now needs to source for its own foreign currency alone.
Minutes from the last Full Council revealed this strange move by the government and put further shadow on the auction system.
At the Full Council, “the Town Clerk reported that the City of Harare was facing water treatment chemicals supply problems”.
“He advised that previously, the Reserve Bank of Zimbabwe provided the necessary foreign currency for procurement of water treatment chemicals.
“However, since the advent of the foreign currency auction system, the City had to source for foreign currency on its own thereby putting a heavy burden on the City’s megre inflows which were in local currency.
Critics have repeatedly questioned the foreign currency auction system which is solely funded by the RBZ and has been characterised by the parallel ballooning of the RBZ’s external debt.
The Council has since sought audience with the Ministry of Local Government and Public Works for necessary assistance in the acquisition of water treatment chemicals.
According to Acting Town Clerk Dr Chonzi, Council currently owes chemical supplier Chemplex over ZWL$350m.