The cash-strapped Marondera Town Council has secured a $2,1 million loan facility from a local bank to pay packages for about 100 employees recently retrenched as part of efforts to downsize its workforce. Among the retrenched were top managers, including some at deputy director level.
Jairos Saunyama
The loan will be repaid within three years and at instalments of $66 000 per month.
Chairperson for the staff committee, Councillor Kennedy Muraicho yesterday confirmed the retrenchment exercise, but refused to give details, referring all questions to town clerk Josiah Musuwo, who was not reachable for comment yesterday.
A top council official said retrenched workers have begun receiving their packages.
“Marondera Town Council received a loan and the accounts department has begun disbursing the packages. The loan will be repaid in instalments in three years. Most of the council’s deputy directors were retrenched,” the official said.
In February last year, council squandered another $1,9m in retrenchment packages for 89 workers.
Marondera Town Council gobbles $300 000 in salaries every month against a monthly revenue of $300 000.
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The huge wage bill has left service delivery at a mess due to lack of funds.
Council employs around 300 workers and is owed $10 million by ratepayers.
