GWERU City Council owes its employees approximately US$4,5 million in unpaid salaries as of January 2025, the latest finance committee meeting minutes reveal.
According to the minutes of the finance committee meeting held early this month employment costs continue to gobble at least 72% of council revenue.
“Owed salaries and subscriptions accumulated over the years have surged to ZiG135,5 million (US$4,5 million) as of January 2025, an increase of ZiG19,5 million (US$650 000) from the previous month, December 2024,” the minutes revealed.
“Employment costs continue to take the lion's share of collections, crowding out critical service delivery.”
According to the report, the city’s revenue inflows decreased, with cash collections for January 2025 falling short of target.
“Out of an anticipated ZiG92,5 million (US$3 million) in monthly revenue, only ZiG46 million (US$1,5 million) was collected reflecting a dismal collection efficiency of less than 50%,” the report said.
“Water and rates, which are council's primary sources of income, underperformed by over ZiG39 million (US$1,3 million combined). Subdued inflows and high levels of unpaid bills continue to constrain council's ability to meet financial
obligations.”
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The report also showed that council's debtors increased to ZiG503 million (US$16,7 million) in January 2025 up by ZiG35,6 million from December last year.
The minutes also indicated that the local authority’s creditors ballooned to US$2,6 million as of January this year with Zesa topping the list.
Council also owes the Local Authorities Pension Fund and National Social Security Authority in unpaid dues.
