Cut salaries or retrench, Govt tells Redcliff

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Patrick Chitumba, Midlands Bureau Chief
THE Government has ordered Redcliff Municipality to retrench some of its employees or cut their salaries as a condition to approve its proposed $8 million budget for this year.

Last year the local authority slashed salaries for its managers by 22 percent as part of efforts to channel more funds towards service delivery.

The move was part of the local authority’s efforts to comply with a Government directive stipulating that 70 percent of the budget must go towards service delivery and 30 percent to salaries.

Redcliff collects an average $120 000 in revenue monthly against a target of $700 000.

The precarious state of its finances has seen council failing to pay workers and is in six months arrears.

Redcliff mayor Councillor Fred Kapuya said the Ministry of Local Government, Public Works and National Housing wrote to the municipality ordering it to retrench or cut salaries.

“Our budget has not been approved by the Government. We received correspondence from the relevant ministry in which they were advising us to cut salaries of employees or retrench in the hope that the move sees us ensuring that 70 percent of the budget goes towards service delivery and 30 percent to salaries,” he said.

Redcliff employs 284 people, a figure Government says is too high for the struggling local authority.

The municipality tabled an $8 million budget from last year’s $16 million.

Clr Kapuya said they were now in consultation following the Government’s directive.

The municipality has been struggling following the 2008 closure of Ziscosteel which employed the majority of residents in the satellite town.

At its peak, Ziscosteel was among Africa’s biggest integrated steelworks, employing about 5 000 people, most of whom lived in Redcliff.

@pchitumba1

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