The Harare City Council risks having its property seized over an unpaid debt of $105,000 owed to former board members of its defunct subsidiary, Harare Quarry. This liability, for unpaid board allowances, was inherited by the council after it assumed direct control of the company earlier this year.
Five of the eleven former members have obtained court judgments against the municipality, authorizing the attachment of city assets. An internal council report recommended urgently settling the debt to avoid this outcome. Some councilors have disputed the payments, arguing that employees should not receive extra compensation for overseeing a council entity.
Despite these internal disagreements, officials are now attempting to negotiate payment plans with the claimants. A recent inquiry found that the subsidiary's failure was partly due to a flawed governance model where city employees dominated its board.
Five of the eleven former members have obtained court judgments against the municipality, authorizing the attachment of city assets. An internal council report recommended urgently settling the debt to avoid this outcome. Some councilors have disputed the payments, arguing that employees should not receive extra compensation for overseeing a council entity.
Despite these internal disagreements, officials are now attempting to negotiate payment plans with the claimants. A recent inquiry found that the subsidiary's failure was partly due to a flawed governance model where city employees dominated its board.
