intergovernmental relations framework should allow scope for continuous renewal

Intergovernmental relations framework should allow

This preview shows page 109 - 111 out of 141 pages.

intergovernmental relations framework should allow scope for continuous renewal and development without lengthy constitutional and parliamentary procedures having to be followed. It would, therefore, be wrong to recommend making a single intergovernmental relations blueprint applicable in all countries at all times. There is need, nonetheless, for LCC and the Central Government of the Republic of Zambia to develop a cordial relationship based on mutual understanding if revenue raising powers and expenditure responsibilities are to be shared amicably between the two authorities. Financial administration in LCC was found to be characterised by considerable levels of transparency and accountability. Rules and procedures are adhered to with regard to the administration of finances, and the council is answerable to various stakeholders about matters of financial nature. The problem of poor service provision by LCC is largely due to inadequate financing of the organisation as opposed to financial wastage although, as earlier noted, there is misapplication of funds (All wastage is misapplication but not all misapplication is wastage). For example, if the local authority spends money meant for service provision (Service Provision Component) on settling outstanding employee terminal benefits, then it has misapplied money but not wasted it. The council does have a full-time internal audit team and is also audited every year by central government. Findings of the various sets of auditors reveal that there are indeed
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110 significant levels of transparency and accountability in terms of financial administration. Therefore, the root of the weak financial muscle of LCC is two- ford: insufficient revenue collection and inadequate central government transfers. LCC should ensure that all the properties/buildings developed and developing within the jurisdiction of Lusaka are captured on the council valuation roll, and there after ensure that the valuation roll is up-dated regularly. This will contribute significantly towards widening the council’s revenue base. In view of the findings of the study, it is noted that central government transfers to LCC are inadequate. There is need for central government to intensify the transfer of funds and grants to local authorities. The investigation is of the view that the devolution of functions to local authorities by central government should be accompanied by matching financial transfers. Nevertheless, as Davey (1994) puts it, “Local revenue generation must be part of a comprehensive and realistic framework of central-local relations, as it is in much of Western Europe, Japan and Korea. It should not be simply a way of passing the financial buck – a solution for national budget deficits or an excuse to divert national budget resources to expenditures of lower benefit to local communities. The framework must make a realistic assessment of the costs of local services at nationally acceptable levels and of the potential contribution of local revenues in the varying conditions of individual localities.” GRZ, being the
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