City Corporations must avoid wasteful expenditure

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NEWS report on Thursday said that the two City Corporations in Dhaka have demanded block allocation of Tk.5,000 crore from the budget to carry out development works in the capital. Dhaka South City Corporation (DSCC) and Dhaka North City Corporation (DNCC) sought Tk. 3,000 crore and Tk 2000 crore respectively and have already sent separate letters to the Ministry of Finance early this month in this regard. Mayors of the two City Corporations have justified their claims saying they are suffering from shortage of funds to run ongoing development works. They made the plea that their existing budgets don’t allow them to meet 30 percent of total cost of development project under Annual Development Program. City Corporations are taking developing projects like construction of fly-over, establishment of markets etc.

As a matter of fact, we want to see that the City Corporations are meeting the expectations of the city dwellers and it obviously needs adequate funds in their hands. But why the City Corporations should need so much budgetary allocations when there is not enough transparency in the use of their own expenditure. Much of their resources are reportedly going into waste on regular basis due to corruption, misuse and misappropriation of funds by their employees and suppliers and contractors who are politically linked to the ruling party and above all accountability against misuse. People would expect that they must increase their income and reduce waste by reducing corruptions. We see that the government owned banks are similarly depending on recapitalization of their capital to run business. Now City Corporations also need huge capitalization of their budget to deliver. People are really confused as to why they can’t earn enough as the source of income has multiplied in the city many ways and reduce enough waste.
We believe demanding crores of taka from public exchequer also demands careful cost estimates of development expenditure. We don’t know whether the two City Corporations are demanding the money against specific projects but the demands for block allocations means putting the funds in an open cheque and the City Corporation officials can spend the money where and when they need for whatever project. There is no openness about the use of the fund except we know that they are running short of fund.

If it is true that the two City Corporations spent Tk 12,000 against each of the 5,000 waste-bins they set up in the city last year, money has just gone into drain. Reports said contracts were given supply orders without tender and vested interest quarters looted bigger part of the money. Most waste-bins are now thrown out of their place and we must say such expenditure must be avoided.

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