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Gwanda Municipality financial woes far from over

by Staff Reporter
07 Nov 2013 at 14:46hrs | Views

The Municipality of Gwanda's financial woes look far from being over with reports that insurance company Old Mutual recently confiscated some council office equipment due to unpaid debts.

Reliable reports from within council indicate that Old Mutual confiscated equipment ranging from fax machines to computers for an undisclosed amount owing on un remitted insurance deductions.

The council recently wrote off debts amounting to US$3 million as per the directive of the Ministry of Local Government in the run up to the elections.

Several other council creditors haven't been settled by council and looks set for more court actions. Council workers are also reported to be in their third month without salaries and are also due to go on industrial action soon.

For the second time in as many weeks council had to take out a council fire tender with a hailer calling residents to come forward and "pay at least something" on their bills. Revenue collection in the council is reported to be at far less than 20% beside residents being given a reprieve by government by cancelling out all their debts.

The mayor of the town Clr Knowledge Ndlovu has been in the press several times requesting residents to pay they bills.

Councillor for ward 7 Jastone Mazhale also recently made similar calls to residents as an appreciation to government for clearing their bills.

The council's financial woes come amidst reports that residents of the town are mobilising for the formation of a residents association or similar pressure group. The residents lobbying for the association claim that council has for a long time been taking them for granted and feel its now time for their voices to be heard.

According to residents much of council funds are spent on a huge salary bill which council cannot afford and so failing on service delivery.

A council employee who refused to be named for fear of victimisation claimed that council senior management is taking around US$30 000 every month in salaries.

The town clerk's salary is reported to be pegged at around US$12 000 per month a figure Bulawayo24 News could not immediately verify.

With the council financial woes extending residents are eagerly awaiting the budget consultation meetings which are expected to be held within the next few weeks.

Fireworks are expected to be the order of the meeting particular on the issue of wages and salaries in relation to council's budgeted expenditure and service delivery.


Source - Byo24News