Norton seeks to borrow $1,2m

Municipal Reporter—

Norton Town Council is seeking permission to borrow $1,5 million to pay retrenchment packages to workers laid off by the council. The council made the application in terms of Section 290 (3) of the Urban Councils Act (Cap.29:15).“Notice is hereby given in terms of Section 290 (3) of the Urban Councils Act (Cap.29:15) that Norton Town Council has resolved to apply to the Honourable Minister of Local Government, Public Works and National Housing for the granting of borrowing powers to the tune of $1,5 millon to cater for retrenchment expenses,” reads part of the application.

The council said details of the proposals could be inspected at his office during normal working hours from Monday to Friday.

“Any objection must be lodged with the town clerk in writing within 21 days from the date of the last two publications of the notice.”

A number of local authorities are struggling to pay workers and, the Local Authorities Pension Fund has not been releasing disbursements to pensioned workers because most local authorities are in arrears.

This has seen a number of retired council employees becoming destitutes.

Earlier this year, Chegutu Municipality sought permission to borrow $900 000 to pay retrenchment packages for workers fired on three months notice following the July 2015 Supreme Court ruling.

The ruling stated that at common law, employers and employees were equal and both parties had the right to terminate contracts on three months’ notice.

Last year, Harare applied for borrowing powers seeking $30 million to buy additional refuse trucks and equipment for road maintenance.

The local authorities are heavily indebted, and are failing to provide basic services to residents due to a decline in revenue inflows.

Harare City Council is owed half a billion dollars in unpaid bills by residents, Government and corporates, a situation which has seen the local authority failing to provide basic services and paying salaries.

Acting finance director Mr Tendai Kwenda attributed the situation to the prevailing economic challenges, which are affecting most residents.

Harare Municipality Workers’ Union executive chairman Mr Cosmas Bungu said council workers had turned into perpetual beggars, surviving on handouts.