Councils face dissolution

Most local authorities risk being dissolved and replaced by commissions after Government unearthed a massive scandal in which they have not been remitting more than US$500 million in taxes, pension and medical aid contributions.

The bulk of the urban councils fingered as major culprits are owing Zimbabwe Revenue Authority (Zimra), National Social Security Authority (NSSA), Pension Fund and Medical Aid amounts running into several millions of dollars.

Information obtained by The Sunday Mail revealed that Harare City Council owes funds close to $184 million, Bulawayo is in arrears of at least $85,5 million while Chitungwiza’s debt stands at $47,6 million.

Other local authority that have not been meeting their obligations include Kwekwe ($15 million), Redcliff ($8 million), Marondera ($3,8 million), Mutare ($6 million), Rusape ($6 million), Masvingo ($2 million), Victoria Falls ($6 million), Gwanda ($9 million), Kadoma ($10 million), Chinhoyi ($11 million), Chegutu ($5 million) Kariba ($6 million) and Norton ($4 million).

Local Government, Public Works and National Housing secretary, Engineer George Mlilo told The Sunday Mail last week that Government would soon descend on the implicated councils.

“We are aware that most of our councils have not been remitting money they would have deducted from the employees. You would find that this thing has been going on for a long time and we have put a stop to it. We are going to act,” he said.

“If they are not paying NSSA, pension fund or medical aid what happens when an employee has problems?

“As a ministry, we are empowered to act in terms of the law. People are going to be fired and councils will be dissolved if they do not pay up. We will simply appoint commissions to serve the people and improve service delivery,” he said.

Eng Mlilo said the recent Government directive for councils to slash salaries and allowances of council bosses was part of measures to ensure more money is channelled towards service delivery. Most of the councils have got monthly salary bills that gobble three months’ revenue.

The Government ordered a downward review of salaries and allowances for town clerks in all 92 local authorities countrywide.

Some of the highest paid town clerks are Harare’s Tendai Mahachi who gets $9 000 every month while Middleton Nyoni from Bulawayo is treated to a $7 000 monthly salary.