Govt reins in councils financial indiscipline

Wallace Ruzvidzo-Herald Reporter

THE Government has moved to rein in financial indiscipline in local authorities, directing councils saddled with salary arrears to immediately stop foreign travel, workshops outside their jurisdictions, and the purchase of vehicles meant for senior managers’ personal use until they clear outstanding obligations.

The directive, contained in Circular 9 of 2026 issued by Local Government and Public Works Permanent Secretary Engineer Tafadzwa Muguti, comes amid concern over local authorities accumulating salary arrears running into several months, while also failing to meet statutory obligations.

Eng Muguti said the situation was adversely affecting employees and was undermining the ability of councils to deliver essential services, directing accounting officers to prioritise salaries and statutory obligations ahead of non-essential expenditure.

“The Ministry has noted with serious concern that some local authorities have accumulated salary arrears spanning several months, together with outstanding statutory obligations.

“This situation is unacceptable, as it adversely affects the welfare and livelihoods of employees, undermines staff morale, compromises productivity, and ultimately impairs the capacity of local authorities to deliver essential services to residents.

“The ministry reiterates that the timely payment of salaries and the settlement of statutory obligations must be treated as priority financial commitments.”

Eng Muguti added that local authorities were expected to exercise prudent financial management, strengthen revenue collection, control expenditure, and ensure that available resources were directed towards meeting their core obligations before committing funds to non-essential expenditure.

Under the new measures, councils with outstanding salary arrears will not be permitted to undertake foreign travel for their officials, while requests for travel authorisation will not be favourably considered where salary obligations remain unpaid.

Councils with salary arrears have also been barred from conducting workshops, retreats, conferences and similar activities outside their respective areas of jurisdiction.

Such activities, where necessary, must instead be held within the local authority’s jurisdiction and will remain subject to budgetary availability and demonstrable operational necessity.

Eng Muguti said Government was also prohibiting councils with salary arrears or statutory obligations from buying vehicles intended for personal allocation, personal issue or as conditions of service for senior managers and other officers.

“This restriction shall remain in force until the outstanding statutory obligations have been fully settled and salary arrears cleared,” he said.

However, Eng Muguti made it clear that the measures were not intended to cripple essential service delivery, allowing councils to procure vehicles and capital equipment strictly required for critical services and infrastructure operations.

“Their purchases must be demonstrably necessary, adequately justified, provided for in approved budgets, and undertaken in compliance with applicable procurement legislation and procedures.

“They must not compromise the settlement of outstanding salaries and statutory obligations,” he said.

Councils carrying salary and statutory arrears have also been ordered to prepare time-bound financial recovery plans detailing their liabilities, measures to improve revenue collection and expenditure control, proposed settlement schedules and timelines for clearing arrears.

Eng Muguti directed town clerks, town secretaries, chief executive officers and other accounting officers to exercise firm financial discipline and ensure expenditure decisions reflect the financial position and statutory responsibilities of their institutions.

“These plans should clearly indicate the total outstanding liabilities, the measures to be implemented to improve revenue collection and expenditure control, the proposed settlement schedules, and the timelines for clearing the arrears.

“All local authorities are required to submit reports to the ministry, detailing their current salary arrears, outstanding statutory obligations, and proposed measures for clearing the liabilities.

“Local authorities shall provide regular updates on progress made in implementing their recovery plans, in accordance with reporting timelines to be communicated by the Ministry,” he said.

Eng Muguti said the Ministry will monitor compliance with the circular and could take appropriate administrative measures, within its statutory mandate, against local authorities that fail to comply.

“Accounting officers and governing bodies of Local Authorities are expected to exercise responsible leadership and ensure that financial decisions prioritise employees’ welfare, statutory obligations, and the provision of essential services to the public,” he said.

Source: Govt reins in councils financial indiscipline – herald

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