×
NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

Redcliff unveils $7 million budget

News
Redcliff Council, which has been struggling to pay its workers since the economy was dollarised in 2009, has unveiled a $7 million 2012 budget with reduced business licence fees to attract investment. Finance committee chairman councillor Gwatirisa Nzeda, presenting the financial estimates at a full council meeting last week, said this year’s budget performed poorly […]

Redcliff Council, which has been struggling to pay its workers since the economy was dollarised in 2009, has unveiled a $7 million 2012 budget with reduced business licence fees to attract investment.

Finance committee chairman councillor Gwatirisa Nzeda, presenting the financial estimates at a full council meeting last week, said this year’s budget performed poorly because residents failed to pay their bills.

He said Ziscosteel’s collapse had also seen businesses relocating from Redcliff.

Ziscosteel has now been rechristened New Zimsteel after India’s Essar Africa Holdings signed a $750 million deal with government.

But the steel giant’s revival has been pegged back by discord in the inclusive government.

Nzeda said the local authority now needs to come up with strategies to attract investors while giving relief to the burdened rate payers.

Residents owe council $9,4 million in unpaid bills. “This financial year remained challenging as council continued to suffer from effects of non operation of our major company, Ziscosteel.

“The non-operation of Ziscosteel (New Zimsteel) had a negative impact on council’s operations as it employs over 3 000 people,” he said.

He said service delivery had suffered because of cash flow problems and failure by the local authority to pay salaries and wages.

“The salary arrears have accumulated to 17 months resulting in low employee morale and this affects service delivery negatively,” Nzeda said in his report to council.

“Employees have approached the High Court for payment of salaries and some have gone for three years without protective clothing.”

The troubled local authority, which has also failed to pay statutory deductions to the National Social Security Authority and the Zimbabwe Revenue Authority among others, is pinning its hopes on the revival of New Zimsteel.

Council has debts amounting to over $8 million and risks having its assets stripped by creditors. “We have reduced licenses for hotels, abattoirs and small-time vendors in an effort to attract investment,” said Freddy Kauya, a special interest councillor.

“Hotel licences are now $3 000 a year from $3 500 while abattoirs are now $850 from $1 700.”