Gweru City Council’s salary bill has increased by $65 000 after the cash-strapped local authority awarded a cost of living adjustment to its workers, a senior council official has said.
Finance director said after the adjustments bill shot from $577 000 to $640 000, but ironically stated that council was unable to pay employees in the agreed timeframe.
“Council has since awarded a cost of living adjustment to all eployees and this has pushed the monthly bill from $577 089, 89 to $641 818, 25,” Mwedzi said in a memo.
Council has taken over Go-Beer Breweries together with its creditors and staff costs adding another monthly salaries bill of $35 000,” he said.
Mwedzi, however, said the municipality was finding it difficult to pay its workers in the agreed time frame of the 15th to the 20th of the following month.
“Council’s financial position remains precarious and it has proven to be difficult to meet these dates,” Mwedzi said.
He said council would only pay workers as and when resources were mobilised.
The city treasurer said council had set up a Revenue Enhancement and Cost Cutting taskforce whose results he disclosed were yet to bear fruit.
Recently the financially-crippled municipality shut down beer concern Go-Beer citing viability problems saying there was need to audit the company.
The council has been struggling to meet its salary obligations since the beginning of the year.