Council to Pay US$255K in US$2 Fraud Case

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Council to Pay US$255K in US$2 Fraud Case
Council to Pay US$255K in US$2 Fraud Case

Africa-Press – Zimbabwe. THE CHIKOMBA Rural District Council has been ordered to pay nearly US$256 000 and over ZWL3 million in salary arrears and benefits to three former employees, who were fired in 2020 over allegations that they defrauded the local authority of just US$2,50.

The local authority has also spent thousands of dollars in a legal battle which spilled to the Supreme Court.

Local Government minister Daniel Garwe is piling pressure on the local authority to settle the claims to the former employees.

The claimants, senior revenue clerk Lawrence Magwiroto, revenue clerk Rosa Chikwama and revenue collector Martha Mudzana are represented by the Zimbabwe Rural District Councils Workers Union and are demanding full back pay and benefits after their dismissal was overturned by the labour courts.

The council accused the trio of over-mastering and under-mastering cash received from ratepayers, leading to a supposed prejudice of ZWL$50, equivalent to US$2,50 then.

They were found guilty in an internal disciplinary hearing in September 2020 and dismissed.

However, the workers appealed to the exemptions committee, which ruled in their favour and ordered reinstatement without loss of salaries or benefits.

Chikomba RDC challenged the decision at the Labour Court and later at the Supreme Court, but lost in all cases.

Following their reinstatement, the workers are now claiming outstanding salaries, benefits and union dues dating back to January 2019.

In a letter dated September 16, 2025 addressed to Chikomba RDC, the union argues that even before their dismissal, Magwiroto and Chikwama were being underpaid, receiving first-notch salaries when they should have been on the third notch, according to Statutory Instrument 87 of 2017.

According to the union, Magwiroto is owed RTGS$1 548 987,53 and US$121 753,60, while Chikwama is claiming RTGS$1 095 733,23 and US$72 256.

Mudzana, a grade 3(ii) revenue collector, is demanding RTGS$975 132.81 and US$61 816 in salary shortfalls.

After losing the court battle, in a letter dated June 10, 2025 seen by NewsDay Weekender, Chikomba RDC offered an out-of-court settlement to the three employees instead of reinstating them.

The local authority offered around US$2 000, which the three rejected.

“The employer now wishes to resolve this dispute out of court to the extent that it is possible to do so,” part of the letter read.

“In view of the convoluted litigation as alluded to earlier, it is the employer’s position that the restoration of an employer and employee relationship is no Ionger possible.

“Therefore, the employer hereby tenders the package articulated hereunder in lieu of reinstatement.”

Garwe wrote to the Chikomba RDC council chairman on October 30, 2025 ordering the local authority to settle the claims.

“The ministry formally instructs Chikomba Rural District Council to comply with the Labour Court’s ruling regarding Mr Lawence Mogwiroto, referenced under Case No: LC/H/89 /21,” Garwe’s letter read.

“The court has determined that he must be reinstated following his unjust dismissal.

“It is imperative that Chikomba Rural District Council acts promptly to implement this ruling to uphold justice and maintain the integrity of our governance structures.”

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