BULAWAYO City Council (BCC) is pursuing its controversial programme to presale housing stands in foreign currency despite opposition from residents, latest council minutes indicate.
The council introduced the scheme in areas such as Pumula South, Emganwini, Magwegwe West, Emhlangeni, Woodville, Magwegwe Extension and Tshabalala.
The move was widely viewed by residents as anti-poor and favouring the rich.
A report by an inter-departmental committee comprising financial services, legal, health, engineering services, housing and community services was taken to council on April 5, 2023, as an update on the negotiations with beneficiaries.
The negotiations on Emganwini and Tshabalala last year resulted in an agreement between parties that a top-up of US$650 per stand should be paid.
The said agreement stated that payment would be done in three months from August 2022 and those who would have paid full amount would enter an agreement of sale through council’s normal procedure.
“After 66% payment of the total amount, council would move to the site and resume servicing while stand purchasers finish off the balance,” the minutes read.
On Magwegwe West presale stand beneficiaries were asked to top-up US$3 400, but no agreement in terms of the payment modalities was reached as residents felt the amount was too much.
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The council stated that engagements were in progress.
On Emhlangeni Phase 2 council said an agreement was reached stating that each beneficiary would pay a top-up of US$4 580 and servicing was to start after six months.
In Pumula South Phase 2 the council noted that beneficiaries were asked to pay a top-up of US$6 000.
“The beneficiaries did not agree on the top-up. Instead, they requested the council to meet the beneficiaries halfway by taking the bigger chunk of the US$6 000 for servicing the stands,” the minutes read.
In Magwegwe Extension, on October 25 last year it was agreed that they pay US$3 700 per beneficiary and that payment of up to 50% of the value was to be made for servicing.
In Woodville on July 22, last year, it was agreed that to complete the remaining servicing, each beneficiary needed to pay US$2 290.
Council noted that in Emhlangeni Phase 2, two beneficiaries had fully paid — US$9 160 and 78 beneficiaries partially paid — US$63 661, while in Woodville, six beneficiaries had fully paid — US$13 740 and 20 beneficiaries have partially paid — US$16 760.
“From housing administration records, total payments received to date were: US$197 206 and R5 100. The project manager produced a robust project plan that allowed for purchases of materials rather than for the funds to remain unused," read the minutes.
“The implementation of the plan would be subject to the availability of the funds. The project manager will produce implementation plans that are scopes, costs and schedules for outstanding works.
“Council is to partly meet servicing costs subject to a detailed project proposal to the project manager for the beneficiaries of Pumula South Phase 2 and Magwegwe Extension.”
The council further noted that the outcome was subject to further engagement with beneficiaries.
