adminWalter Mswazie Masvingo Correspondent
CASH- STRAPPED Masvingo City Council owes the Local Authorities Pension Fund more than $6 million in unpaid contributions according to the latest council minutes.The Pension Fund wrote a letter demanding that the local authority make an immediate payment of about $2,6 million.
“Council owes the Local Authorities Pension Fund about $6 million and the Fund has since written to council demanding demanding an immediate payment of $2,6 million.
“It was resolved that the payment be put in abeyance pending a common position to be taken by Urban Councils association of Zimbabwe (UCAZ),” reads the report.
Masvingo City Council has been facing challenges in collecting revenue and as a result is struggling to pay its workforce as well as meet other financial obligations.
Residents, industry and government departments now owe the council more than $25 million in unpaid rates and rentals.
The local authority has since engaged debt collectors to force residents and companies to clear their arrears.
According to the latest full council report, the debt ballooned from about $14 million early this year to more than $25 million by September 30.
Government institutions were the biggest debtors as they owed the council about $14,3 million.
Online Reporter