Gweru City Council has offered residential stands in lieu of workers’ outstanding salaries and 2015 bonuses, Southern Eye has learnt.
BY Stephen Chadenga
Presenting the 2017 proposed budget early this week, finance director and acting town clerk, Edgar Mwedzi, said council had agreed with workers to set aside their outstanding salaries and bonuses for the purchase of residential stands.
“There is still a backlog in the payment of salaries, although an agreement has been reached with the workers to forgo four months’ salary and 2015 bonuses towards the purchase of residential stands,” he said.
Last year, council offered residential stands to employees at its shutdown beer entity, Go Beer Breweries, to cover salaries and wages in a bid to avoid labour cases.
Currently, the cash-strapped local authority owes its employees five months’ salaries, as the harsh economic environment has hit hard its revenue base, with most residents failing to pay their rates.
Meanwhile, Mwedzi said Zesa Holdings owes council $8 million in unpaid rates, although the power utility is contesting the bill.
“The large variance on rates is mainly attributed to way leaves (sic) of $8 539 200, billed to Zesa, of which Zesa is contesting the bill,” he said.
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Mwedzi said the council had finished valuating properties and that rates and supplementary charges were expected to yield $15 960 230, which represents 39% of the total 2017 budget.
Over the years, government departments and parastatals have been failing to settle their outstanding bills crippling operations at the financially strangling local authority.
