adminMashudu Netsianda Senior Court Reporter
THE Zimbabwe Manpower Development Fund (Zimdef) has dragged Gwanda Municipality to court for failing to remit levies and premiums from its wage bill in the last two years.Zimdef this week filed summons at the Bulawayo High Court citing Gwanda Municipality as the only defendant.
Zimdef is demanding $31,966,20 from the local authority for levies and premiums, which were supposed to be remitted between October 2013 and December 2014.
The development fund in its summons filed through it lawyers, Ndove, Museta and Partners, said Gwanda Municipality has continuously neglected to settle the debt despite demand.
“While Gwanda Municipality has been assessed in accordance with the law, contrary to this statutory obligation, defendant has failed or neglected to remit the contributions, levies and premiums to plaintiff despite demand for the period between October 2013 and December 2014 in the total sum of $31,966,20,”said the Zimdef lawyers.
In terms of the Manpower Planning and Development Act as read in conjunction with section 3 of the Manpower Planning and Development (Levy) Notice SI 74 of 1999, Gwanda Municipality is obliged to pay one percent of its total assessed wage bill and other leviable benefits on employers and directors on or before the first day of each month.
The lawyers said the law empowers Zimdef to impose a 10 percent surcharge on overdue levies.
According to court papers, Zimdef wants Gwanda Municipality to pay $31,966,20 with prescribed interest calculated from the date the summons were issued to the date of full and final payment and cost of suit at attorney-client scale.
Gwanda Municipality has not yet filed a notice to enter an appearance to defend the summons.
The municipality has fallen on hard times, having been blacklisted by its service providers who are being owed a combined $8 million by the town.
The local authourity has also defaulted paying workers’ salaries for a number of months thus accruing salary arrears..
Online Reporter