Council to pay US$255K over US$2 fraud case

The Chikomba Rural District Council (RDC) has been ordered to pay nearly US$256,000 and over ZWL$3 million in back pay and benefits to three former employees who were dismissed in 2020 over allegations that they defrauded the council of just US$2.50.

The payout follows a protracted legal battle that stretched from the Labour Court to the Supreme Court - with the council losing at every stage.

The affected employees - Lawrence Magwiroto (senior revenue clerk), Rosa Chikwama (revenue clerk) and Martha Mudzana (revenue collector) — were dismissed after being accused of "over-mastering and under-mastering" ratepayers' cash, which the council claimed resulted in a loss of ZWL$50, equivalent to US$2.50 at the time.

They were found guilty at an internal disciplinary hearing in September 2020 and subsequently fired. However, they appealed the decision through the Exemptions Committee, which ruled in their favour and ordered their reinstatement without loss of salary or benefits.

Chikomba RDC challenged that ruling at both the Labour Court and later the Supreme Court, but the courts upheld the workers' reinstatement.

Now, the three, represented by the Zimbabwe Rural District Councils Workers Union, are demanding full back pay and benefits dating back to January 2019, including salary adjustments that they claim were not implemented before their dismissal.

According to union documents dated September 16, 2025, Magwiroto is owed RTGS$1,548,987.53 and US$121,753.60, Chikwama is claiming RTGS$1,095,733.23 and US$72,256, while Mudzana, a Grade 3(ii) revenue collector, is demanding RTGS$975,132.81 and US$61,816.

The union also argued that Magwiroto and Chikwama had been underpaid prior to their dismissal, as they were placed on first-notch salaries instead of the third notch stipulated under Statutory Instrument 87 of 2017.

After losing the case, Chikomba RDC tried to reach an out-of-court settlement. In a letter dated June 10, 2025, the council offered each of the employees about US$2,000, citing that reinstatement was no longer practical.

"In view of the convoluted litigation as alluded to earlier, it is the employer's position that the restoration of an employer and employee relationship is no longer possible. Therefore, the employer hereby tenders the package articulated hereunder in lieu of reinstatement," read part of the letter.

The offer was rejected by the workers.

The matter has since drawn the attention of Local Government and Public Works Minister Daniel Garwe, who has directed Chikomba RDC to comply with the court rulings.

In a letter dated October 30, 2025, Garwe instructed the council to act immediately.

"The ministry formally instructs Chikomba Rural District Council to comply with the Labour Court's ruling regarding Mr Lawrence Magwiroto, referenced under Case No: LC/H/89/21," Garwe wrote.

"The court has determined that he must be reinstated following his unjust dismissal. It is imperative that Chikomba Rural District Council acts promptly to implement this ruling to uphold justice and maintain the integrity of our governance structures."

The legal saga has cost the council thousands of dollars in legal fees, raising public concern over financial mismanagement and the broader cost of labour disputes in local authorities.

Sources within the council say the case has divided officials, with some accusing management of mishandling the disciplinary process from the start, leading to unnecessary losses for the already cash-strapped local authority.