Deposit revenues before spending, authorities urged

The CRDB Bank managing director Dr Charles Kimei and the minister of state in the Prime Minister’s Office – Regional Administration and Local Government Authorities, Ms Hawa Ghasia arrive at a seminar organised by the bank for officials from district and municipal councils from the Central Zone in Dodoma yesterday. PHOTO|COURTESY OF CRDB 

In Summary

The CRDB Bank corporate banking director, Mr Philip Alfred, said the bank was discussing with the government with a view to relaxing some regulations associated with the guaranteeing of loans to district and municipal councils.

By The Citizen Correspondent

Dodoma. The government has called upon local government authorities (LGAs) to cultivate a tendency of banking all their collected revenues before making expenditures for the same.

This was said here yesterday by the Minister of State in the Prime Minister’s Office – Regional Administration and Local Government Authorities, Ms Hawa Ghasia, during a seminar organised by CRDB Bank for officials from district and municipal councils from the Central Zone.

The basic trend, she said, has been that some LGAs start spending before depositing the money with commercial banks, contrary to directives from the Central Government that require them to bank the money first as a prerequisite for financial discipline.

“This unbecoming tendency must end,” she told some 300 officials from various LGAs here yesterday. The CRDB Bank-organised seminar brought together LGA officials from Dodoma, Morogoro, Manyara, Tabora and Singida with the aim of equipping them with the services and opportunities that the bank offers for the development of municipals and district councils.

The first of such seminars was held in Mwanza about two months ago.

In his remarks, the CRDB managing director, Dr Charles Kimei, said the bank was ready to accommodate municipals and district councils in issuance of development loans.

He also assured those LGAs that have chosen to bank with CRDB that his bank will always strive to make sure that LGA employees receive their wages and salaries on time irrespective of delays from the government side.

The CRDB Bank corporate banking director, Mr Philip Alfred, said the bank was discussing with the government with a view to relaxing some regulations associated with the guaranteeing of loans to district and municipal councils.

Among the councils that have borrowed from the bank include Mbeya City which secured a Sh17.5 billion loan for constructing Mwanjelwa Market.