Key Points

• Harare Council fraud case costs city $255,000 in payouts.

• Minister Garwe says firing staff over $2 was excessive.

• Harare Council fraud case sparks calls for governance reform.

HARARE — Local Government Minister Daniel Garwe has sided with the fired workers in a case that has gotten a lot of attention. The Harare City Council has been told to pay them US$255,000 in damages for firing them over a US$2 fraud.

The workers were accused of mishandling transactions that had to do with small differences in the council’s accounts, but the minister said they were fired without what he called “due administrative fairness.”

Minister defends workers in fraud case

Garwe said after looking at the case that the decision to fire the workers was “too much and not justified,” pointing out that the amounts involved were small compared to the compensation that is now owed. He told reporters in Harare, “You can’t fire employees for $2 and then cost the council hundreds of thousands in payouts.”

The problem started with an audit in 2021 that found problems with how the municipal finance department handled cash. After an internal hearing, five junior clerks were fired right away for not reconciling small transactions.

The council has to pay $255,000 in damages

Later, an independent labour tribunal ruled in favour of the workers and told the council to either hire them back or pay them $255,000 in damages, which included unpaid wages and benefits. The council chose to pay, but since then it has been hard to find the money because the city’s budget is getting tighter.

Officials say the case shows that local governments have bigger problems with governance and accountability, where bad oversight often leads to expensive administrative disputes.

Garwe said that his ministry is looking over the rules for punishing people in local councils so that things like this don’t happen again. “We need to make oversight stronger, make sure things are fair, and protect public funds,” he said. He also said that the ministry would not put up with financial irresponsibility or abuse of power in labour matters.

Groups of residents have also criticised how the case was handled, saying it shows a larger pattern of poor management at Town House that keeps costing taxpayers money.