Chegutu Municipality to borrow US$500,000 from estates account to pay its workers’ six months salary arrears

THE Municipality of Chegutu workers have gone for six months without receiving their salaries, a situation that has severely compromised service delivery.

In response, the council has embarked on a contingency plan to rescue the demoralising situation. As part of emergency measures to pay workers, a recently held council meeting resolved to borrow US$500,000 from the council’s estate account.

While Ward 4 Councillor Alderman Stanley Banda questioned the use of the estate fund, Town Clerk Jacob Chikuruwo clarified that although the account is primarily for capital development, it can serve as an internal lender during crises.

“Let me shed light: the estate account is set for capital development, which translates to economic development,” Chikuruwo explained.

“The account has guiding rules; however, on emergency issues, the council can borrow and return the money with interest. This maintains the integrity of the account since it is not for mere operations.”

The borrowed money is viewed as a “relief financing model” intended to boost employee morale and effectiveness.

However, Finance Director Faniseni Shuwa noted that the US$500,000 is not sufficient to fully clear the arrears. He cited the ballooning debt as a result of the prior cutting and slashing of licence fees, which has hampered revenue collection.

The municipality was owed over ZiG200 million as of December 2025, a deficit that requires serious revenue collection mechanisms to rectify. Shuwa pointed to the potential implementation of new by-laws to cushion and improve future collection.

Ward 10 Councillor Alfred Mombeyarara highlighted that unlicensed Small to Medium Enterprises (SMEs) operating at undesignated points are a major potential revenue source currently being ignored. He noted that many SMEs operate in the light industry without the council collecting a cent, while private stall owners benefit from renting them out.

Ward 2 Councillor Collen Mapfumo emphasised that while funding is being sought, management must “up their socks” in supervising subordinates to ensure that the payment of arrears actually translates to improved service for residents. Settling these salaries was notably a special condition of the Chegutu Municipality’s approved budget.