Mafume raises concerns over council pension funds

Harare Mayor Jacob Mafume has raised serious concerns over the management and allocation of the council's pension funds, questioning their effectiveness in supporting local businesses and infrastructure development.

Speaking at a full council meeting held at Town House yesterday, Mafume said the diversion of pension funds raised doubts about transparency and strategic oversight, noting that the funds should be driving economic growth and benefiting both workers and the city.

"I think there is no relationship and our pensioners are suffering. The place to invest in Zimbabwe is Harare. So, how do we help the struggling business communities to get investors yet we have a pension fund?" Mafume said.

He criticised investment decisions that saw funds spent elsewhere, questioning why millions were being directed outside Harare when opportunities existed within the city. "They go and buy land elsewhere, US$2 million, when they could get land here in Harare… Sometimes, I wonder what happens with our processes and the people who represent us there. We don't get regular reports. We are not being fully represented," he added.

Mafume also highlighted contradictions in the current pension system, pointing out the overlap between gratuity payments and pension contributions. "We now give people gratuities when they retire. But at the same time, we are paying amounts to the pension fund. So, why are we contributing to a pension fund when in our collective bargaining agreement, we are now giving them gratuities? It's an oxymoron, a serious contradiction of effort," he said.

The mayor further questioned why the pension fund had not been utilised to develop schools, sell or develop stands for workers, or create other investment opportunities in Harare. "Why is it not building schools yet? Why is it not developing stands for people to sell? Or developing stands for some of the workers to buy while they are still unretired?" he asked.

In conclusion, Mafume called for an urgent review of the council's pension policy framework, expressing concern over representation on the pension fund board. "There is something wrong with our pension strategy. And I made myself clear to the board members that visited. And I don't know who was appointed to represent us here from the council to get the pension fund. Who is representing us?"

The mayor's remarks underscore ongoing concerns over transparency, accountability, and strategic use of public funds intended to support both council workers and local economic development.