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Chitungwiza Municipality has retired at least 124 employees who are over 60 years as part of a restructuring and cost-cutting measure. This follows reports that the municipality spends over half of its revenue on salaries and has written to Government seeking a US$10 million grant to pay salary arrears. In January last year, council received US$1 223 240, 70 from its residents, US$768 590 of which went towards payment of salaries, leaving US$123 443,92 for service delivery.
Acting town clerk Mrs Gloria Gonese confirmed the development, saying the early retirement would help the cash strapped council clear its debt and improve service delivery.
She said the exercise was targeting all departments.
“It is true, we are restructuring, but what we have done is that we have started by retiring employees that are above 60 years,” she said.
“This is in line with implementing a resolution which was passed by council.
“We have retired about 124 employees. This is basically to try and address the challenges we are facing whereby our wage bill surpasses the revenue we are collecting.
“The retiring of 124 employees will translate to about 20 percent salary reduction. As for now we are having a debt of close to US$2 million as we are collecting between 40 to 60 percent of what is expected.”
The Chitungwiza municipality is owed about US$27 million in unpaid rates by residents, which is hindering the improvement in service delivery.
The municipality has been rocked by a number of problems in recent months including failure to pay its workers and strikes.
Service delivery is at its lowest in the town with burst sewer, uncollected garbage and allegations of corruption haunting the town council.
Online Reporter