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The MDC-T-run council owes creditors over US$3 million.
Of the said amount, council owes Zesa US$1 million in an unpaid electricity bill.
Council workers have gone for three months without pay, compromising service delivery.
Town Clerk Mr George Makunde confirmed that the municipality was facing serious cash flow problems.
“We are struggling. We are not very much liquid. We are in the red. We owe Zimra, Zesa and we have not been meeting our statutory obligations.
“We owe US$3 million but we have a payment plan with our creditors,” he said.
Mr Makunde attributed the woes Kariba is facing to failure by residents to pay rates.
“We are owed US$2,4 million by residents and some corporate organisations,” he said.
But workers who recently went on a six-day industrial action demanding payment of outstanding salaries blame alleged poor management and corruption for the financial problems.
They are accusing Mr Makunde of leasing council properties “in suspicious circumstances which benefit the town clerk”.
The properties are Water of Life, Guesthouse, Brickyard and Nyamhunga Community Hall.
Management and councillors also reportedly awarded themselves residential and commercial stands for speculative purposes.
Council also allegedly approved the purchase of vehicles without going to tender.
Of the vehicles, a BT50 truck was reportedly bought from the streets at about US$27 000.
Council also bought a minibus for councillors while “employees are going to work in a lorry”.
Councillors were reportedly granted three-month advance allowances at a time workers have gone for months without being paid.
This has heightened the animosity between council and its workers.
There are also allegations that senior council officials grabbed vehicles that council got from businessman Mr Philip Chiyangwa in a land swap deal.
Mr Makunde confirmed that the vehicles council got from Mr Chiyangwa now belonged to senior council officials.
He dismissed other allegations raised by workers as false, saying there is bad blood between him and the workers.
Mr Makunde said Kariba Municipality is in talks with a Germany donor organisation for assistance in revamping water distribution lines and the sewer reticulation
system.
Online Reporter