THE Kwekwe City Council has failed to insure its movable and immovable property for over a year leaving the municipality at risk of suffering heavy losses should it be damaged or destroyed.
This revelation is contained in minutes of the council’s procurement committee held on January 21 and chaired by town clerk Emanuel Musara.
The committee, which is made up of the six top directors at Town House, was discussing the $150 000 Amaveni Tavern which was razed to the ground by a veld fire in 2012.
The tavern has still not been rebuilt.
According to the minutes, city treasurer Rejoice Mwene told the committee that the rebuilding of the council-owned Amaveni Tavern was no longer possible because when it was gutted down by fire, council’s insurance with ZIB had already lapsed due to non-payment.
“Although there was an initial impression that the insurance company could pay for the repairs if council paid $30 000 as part payment to reduce its arrears, it was unfortunate that the ZIB official (a Mr Chivasa) who was dealing with council by then was no longer with the company and in the absence of a written agreement, ZIB has refused liability,” Mwene told the committee.
Mwene also informed the meeting that council needed to flight a tender for insurance to cover council property because the local authority had no cover.
The procurement committee then agreed to seek a short term insurance cover with ZIB while waiting for the tender process.
However, a full council meeting refused to endorse the minutes of the procurement committee following a misunderstanding on its composition meaning that its resolutions and recommendations are not enforceable.
Mayor Matenda Madzoke confirmed that council property was at risk owing to the insurance gap.
“Yes, the position is that our property is not insured at the moment but it’s not everything that is not insured,” he said. It’s only property that needs lot of cover which is outstanding and I am convinced that by Tuesday we will have dealt with the procurement committee and insurance will be bought.”