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Sanganai/ Hlanganani leaves Mutare US$3,5m in the red
6 hrs ago |
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Mutare City Council says it is struggling under a US$3.5 million debt burden after undertaking road rehabilitation projects linked to national events that were expected to be funded by central government.
City Engineer Maxwell Kerith told a full council meeting this week that the local authority owed millions of dollars to contractors hired to rehabilitate roads ahead of the Sanganai/Hlanganani Tourism Expo held in September 2025 and the ruling ZANU PF annual conference hosted in Mutare the following month.
Kerith said government had committed US$8 million toward the road rehabilitation programme, but the funding had not yet been disbursed.
"Road projects initiated during the Sanganai/Hlanganani Tourism Expo and the ZANU PF National People's Conference remain unfunded by Central Government despite a commitment of US$8 million to the City of Mutare," he said.
According to council officials, the city is now diverting funds intended for routine maintenance to service debts owed to contractors, making monthly payments ranging between US$30,000 and US$50,000.
Town Clerk Blessing Chafesuka warned that the situation was placing severe pressure on council finances.
"On roads we have a serious crisis. We owe US$3.5 million for road works done in preparation for national events which were supposed to be funded by Central Government," Chafesuka said.
"This is putting a strain on us because this funding we are using now to pay off the contractors is the money which is supposed to go to routine maintenance. It's not looking good."
Council documents showed that several roads were rehabilitated under the programme, including Railway Street, where more than US$873,000 remains outstanding, Bridge Road with US$670,000 owed, Glasgow Road with US$783,000 outstanding and Industrial Road with US$410,000 unpaid.
Most of the projects were undertaken by Jepnik Contractors, while Newcastle Road — where more than US$752,000 is still owed — was handled by Haldrik Contractors.
Efforts to obtain comment from Barbra Rwodzi, the Minister of Tourism and Hospitality Industry, were unsuccessful.
The debt comes as many Zimbabwean urban councils face mounting financial pressures linked to ageing infrastructure, service delivery challenges and limited revenue collection.
City Engineer Maxwell Kerith told a full council meeting this week that the local authority owed millions of dollars to contractors hired to rehabilitate roads ahead of the Sanganai/Hlanganani Tourism Expo held in September 2025 and the ruling ZANU PF annual conference hosted in Mutare the following month.
Kerith said government had committed US$8 million toward the road rehabilitation programme, but the funding had not yet been disbursed.
"Road projects initiated during the Sanganai/Hlanganani Tourism Expo and the ZANU PF National People's Conference remain unfunded by Central Government despite a commitment of US$8 million to the City of Mutare," he said.
According to council officials, the city is now diverting funds intended for routine maintenance to service debts owed to contractors, making monthly payments ranging between US$30,000 and US$50,000.
Town Clerk Blessing Chafesuka warned that the situation was placing severe pressure on council finances.
"This is putting a strain on us because this funding we are using now to pay off the contractors is the money which is supposed to go to routine maintenance. It's not looking good."
Council documents showed that several roads were rehabilitated under the programme, including Railway Street, where more than US$873,000 remains outstanding, Bridge Road with US$670,000 owed, Glasgow Road with US$783,000 outstanding and Industrial Road with US$410,000 unpaid.
Most of the projects were undertaken by Jepnik Contractors, while Newcastle Road — where more than US$752,000 is still owed — was handled by Haldrik Contractors.
Efforts to obtain comment from Barbra Rwodzi, the Minister of Tourism and Hospitality Industry, were unsuccessful.
The debt comes as many Zimbabwean urban councils face mounting financial pressures linked to ageing infrastructure, service delivery challenges and limited revenue collection.
Source - Mirror
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