KARACHI, July 22: As a financial crisis continued to haunt all 18 towns of the metropolis, Saddar Town on Tuesday joined in the hue and cry by sending an SOS to the provincial government for the restoration of all towns’ share in the octroi and zila tax for the month of June to rescue the local government system.

Saddar Town nazim Mohammad Dilwar said that the 50 per cent cut in the towns’ share effected by the provincial government had badly affected the financial strength of all tiers of the local government, warning that the financial crisis would have a devastating impact on the working of the municipal administrations.

The Sindh government had released Rs233.7252 million being the 50 per cent of the net amount of payable to the towns as indicative share in the OZT for the month of June 2008. The rest of the amount has been withheld for adjustment of the accumulated electricity dues.

The nazim said there was no justification for deducting the amount at the source. He questioned the justification for the withholding of the amount arguing that the town was not among KESC defaulters.

Mr Dilwar pointed out that the town had earmarked the amount of OZT share for disbursement of salaries to town employees and other expenditure like fuel and electricity consumption.

He said that the decision to cut the funds at source had created a serious problem for the municipal administration which would have to readjust its priorities and put many development schemes on the back burner.

The nazim termed that the decision an ill-advised one, observing that “certain elements in the bureaucracy are trying to cripple the local government system through such an artificial financial crisis.”

He called for taking a firm decision on the future of the devolution plan and urged the Centre and the provincial governments to either let the local governments system function smoothly or abolish it altogether.

He further observed that local governments across the country were faced with the worst ever crisis since their introduction.

The nazim also repeated his earlier demand for special federal grant for his town as it had to cater security requirements of the VVIPs visiting different areas of the town very frequently and similar arrangements for a large number of sensitive installations, foreign missions, etc, besides rendering municipal services.