allowances that management awarded itself.
The salary cut comes at a time when town clerk Mr Godfrey Tanyanyiwa and the housing and community services director have been arrested on corruption charges.
Health services director Dr Mike Simoyi and chamber secretary Ms Omega Mugumbate have resigned.
Two other unidentified officials have been suspended. More officials are expected to resign while others face arrest.
The municipality owes service providers up to US$16,9 million while it is owed US$4 million in rates arrears.
Chairman of the resuscitation team, Manicaland provincial administrator Mr Fungai Mbetsa, announced the cut yesterday during a meeting with residents. He said more cuts were imminent to make the salary bill conform to the Government directive that only 30 percent of revenue collected goes towards staff costs.
“With the action taken so far, the team has managed to save US$400 000 from the salary bill which now stands at US$1,3 million from US$1,7 million.
“This is obviously not yet enough to reach the Ministry’s threshold of 30 percent of total capital raised,” he said.
He said council owes its employees December and January salaries, which the team is raising.
Mr Mbetsa said management salaries for December and January will not be paid as a way of recovering overpayments made to them. The team has ordered that management salaries revert to the June 2011 figures.
The reversal follows a unilateral 132 percent increment that was done without council approval.
Mr Mbetsa said deputy mayor Councillor Rangarirai Mutingwende had ceded a new twin cab bought for him to Mayor Alderman Chipiyo. Aldeman Chipiyo’s vehicle reverts to the health services department.
“Employees whose contracts of employment are being terminated have been offered a right of first refusal to purchase vehicles under their possession on a cash basis,” he said.
Funds from the sales will be used to buy functional vehicles. Mr Mbetsa said council is managing to collect only 30 percent of the US$1,7 million it bills.
However, the council last billed its residents in November. He said council owes US$7,1 million in statutory remittances, US$8 million in unpaid water bills to Harare and US$1,8 million to a number of banks.
He recommended that council either lease out its beerhalls or privatise them as they were not viable.
The team, he said, will look into the status of contracts awarded to companies servicing the Nyatsime housing project. There are fears that money paid by residents was abused as the project has failed to take off. The resuscitation team was mandated to ensure disciplinary action was instituted against those implicated in the investigation. Criminal cases will also be dealt with while the team works to recover funds owed to council.
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