22 April 2008
Maputo — The Assembly of the Republic, Mozambican Parliament, unanimously passed this Tuesday the first reading of a new Bill for New Municipalities.
During the session, the ruling party Frelimo, through its majority, passed another bill that establishes 10 new 10 municipalities earlier proposed by the government.
While the parliamentary opposition coalition Renamo-Uniao Eleitoral declared the new Bill for New Municipalities as 'appropriate and timely', it claimed that many other towns also meet the requirements to rise to the category of municipalities.
Therefore, Renamo argues the number of new municipalities should be raised to 31, instead of the current 10 approved this Tuesday.
According to Renamo, there are other 20 towns eligible to municipality status, but all were rejected by the ruling Frelimo, arguing that the principle of gradualism and rationality would continue to guide the whole process of municipalization.
Addressing the parliament, State Administration Minister, Lucas Chomera, who submitted the new Bill, explained that it would be financially unsustainable to grant municipality status to more than 10 towns, as most of the existing 33 municipalities can only raise 30 percent of funds from local taxation and fees to cover their financial requirements, with the remaining 70 percent drawn from the state budget.
"Now, we are in a position to only establish 10 municipalities", stressed the minister.
Under the Law 1/2008 dated January 16, only 1,5 percent of country's tax revenues should be channeled to the local governments, and hence new municipalities would translate cuts granted to the existing 33 municipalities, explained Chomera.
The new 10 municipalities approved by the Parliament include one for each province, namely Namaacha (Maputo province), Macia (Gaza), Massinga (Inhambane), Gorongosa (Sofala), Gondola (Manica), Ulongue (Tete), Alto Molucue (Zambezia), Ribaue (Nampula), Mueda (Cabo Delgado) and Marrupa (Niassa).
Meanwhile, the minister made a positive assessment of the performance of existing 33 municipalities and their contribution to the development of cities and towns by ensuring the participation of local communities in finding solutions to local problems.
'The success of these municipalities represents the commitment of the Government with decentralization process, administrative governance, and tax policy seeking to improve provision of services, said Chomera, stressing that this would help to strengthen democracy in the country.
The criteria used for choosing the 10 new municipalities, according to Chomera, include a number of factors such as number of inhabitants, ability to generate their own revenue, health and education networks, number of shops and markets, and the availability of other public services, namely transport and communications, hotels and tourism and banks.
According to a dispatch from the Finance Minister, Manuel Chang, the establishment of 10 new municipalities will cost to the state budget about 57 million Meticais (there are 24.5 meticais for one dollar), being 31 million meticais from the Local Authority Compensation Fund, and 26 million meticais from the Local Initiative Investment Fund.
SAM/SG
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