IT never rains but pours for Mutare City Council after the National Social Security Authority (NSSA)reportedly garnished its bank account to recover $97 500 owed to it by council subsidiary Pungwe Breweries.
REPORT BY OBEY MANAYITI
The local authority is struggling to pay its workers and the city has resolved not to renew some of the contracts for contract workers.
The decision has since divided the city fathers with councillors calling for their reinstatement while management was adamant that reducing the workforce in the face of financial challenges made economic sense.
According to a NSSA garnish order that was debated at a special council meeting on Monday, the city, by virtue of owning Pungwe Breweries, should also pay its debts.
Read part of the summary of the NSSA garnish report presented to council: “NSSA has placed a garnish order of $97 500 on the council account for unpaid contributions by Pungwe Breweries and Marketing. “NSSA has advised that the garnish has been done in terms of the NSSA Act which they claim empowers NSSA to follow up outstanding contribution even to shareholders. If the garnish order is effected, council would have paid $97 500 on behalf of Pungwe Breweries. It should be noted that council is financially struggling and cannot afford to pay that much.”
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However, on deliberations during the special meeting, council resolved to ignore the garnish, arguing that Pungwe Breweries was a private entity and it should clear its own debts.