Home » Governance » Mutare City Council Broke

MUTARE City Council is in the red due to serious financial challenges and will soon embark on various cost-cutting measures to avert a collapse of service delivery.

Early last week Mutare City laidoff close to 200 contract workers citing financial challenges.

Mayor Tatenda Nhamarare blamed residents for not paying their rates as well as the ailing economy which has resulted in the closure of several industries in town.

He said revenue inflows were in shambles with council now operating below capacity.

“The main reason for such a situation is that residents are defaulting paying rates. More so, the closure of industries in Mutare has crippled our revenue base,” said Nhemarare.

“We are now relying on the informal sector which comprises of vendors and the flea markets to get revenue.”

He said council was also failing to meet statutory obligations to cater for, among others, Zimbabwe Revenue Authority (ZIMRA) and National Social Security Authority (NSSA) payments.

“We are also in arrears with such institutions and recently ZIMRA was demanding what is due to them,” said Nhamarare.

Mutare city used to enjoy better revenue inflows before many industries such as Mutare Board and Paper Mill and Karina textiles closed due to viability challenges.

Some of the industries which closed shop include the timber companies which used to employ thousands of workers.

Nhamarare said the failure by the city to pay its contract and permanent workers was a reflection of poor revenue collections.

He said a settlement was being worked on to pay workers, most of whom were owed seven months salaries and 2012 and 2013 bonuses.

Source : Zimbabwe Standard