Council, employees in debt pact
CHITUNGWIZA Municipality has entered into a “debt swapping” arrangement which will see council workers’ children learning for free at schools which have not been paying rates.
Council owes employees over $20 million while schools owe the local authority $25 million.
This has seen the local authority engaging both parties for a debt swap, where council pays its employees by clearing their children’s fees while the schools will in the process have their debts cancelled.
Presenting her September to October financial report, council’s finance director Mrs Evangelista Machona told a caretaker council meeting that employees and schools had agreed to the proposal.
“Recommendation is that debt set off be made between Chitungwiza and schools which are in arrears owing the municipality for bills in respect of rates,” said Mrs Machona.
“Relevant information is that council held a meeting with Chitungwiza school heads on July 11 to discuss issues of non-payment of council bills since schools are in arrears.
“At that meeting it was raised that since council was failing to pay its workers and most children of council employees were being expelled from schools due to failure to pay school fess, a debt set-off be entered into to address the challenge.
“The concept was accepted by both parties, but a few heads advised council to engage their principals who are the school development committees. A meeting was held with the SDCs on July 17 who also agreed to the set-off, but they said they wanted to seek guidance from the Ministry of Education.”
She said the parties latter came to an agreement.
“Finally, it was agreed that the debt setoff be done since it was voluntary to individual council employees to have salary arrears deducted to set off towards payment of council outstanding bills owed by schools in Chitungwiza.
“We were urged to expedite the process and seek council resolution. We agreed with the SDCs, school heads that since they owe us, they will provide invoices to council employee which will be used to deduct from the arrears and we set off against their bills.”
Chitungwiza caretaker commission chairperson Mr Madzudzo Pawadyira advised council to follow the agreement closely.
“Anyway, make sure that they do not stray from the confines of the agreement,” he said.