Abel Zhakata-Senior Reporter
THE late former Mutare Town Clerk, Mr Joshua Maligwa, is set to receive a golden handshake valued at over $15 million if the city fathers rubber-stamp recent recommendations made by senior management, The Manica Post has learned.
The cash-strapped local authority — which is battling to provide services to residents — is set to splash US$88 500 on Mr Maligwa’s outstanding motor vehicle.
A high-density, commercial and an industrial stands will also be allocated to the late Mr Maligwa’s estate.
According to council rates, a 300 square-metre high-density stand is pegged at around US$10 000, payable in local currency using the interbank rate; while a commercial stand measuring 600 square metres in the Central Business District (CBD) costs around US$30 000.
An average industrial stand measuring about 6000 square metres costs around US$70 000.
The Maligwa estate is therefore expecting to receive money and land valued at about US$200 000 from the local authority, which translates to about $17 million after conversion using a foreign currency exchange rate of 1:83.
Mayor, Councillor Blessing Tandi, confirmed the development and said the local authority was obliged to pay the terminal benefits as they were contained in Mr Maligwa’s employment contract.
“These are terminal benefits which were part of his contract and we should own up. I don’t have the actual figures of what is due to him, but management is working out everything. This issue is on our agenda in our next council meeting and we will disclose the outcome after that,” he said.
According to a memorandum written last month by Acting Town Clerk, Dr Anthony Mutara, a copy of which this paper has in possession, the beneficiary of Mr Maligwa’s estate is entitled to receive the terminal benefits.
“It is recommended that council allocates the outstanding stands (one high-density, one commercial and one industrial) to Mr Maligwa’s estate,” wrote Dr Mutara.
“Following the death of the Town Clerk on January 5, 2021, the beneficiary of the estate is entitled to receive terminal benefits. The other benefits as per condition of service were paid to the beneficiary.
“The outstanding low-density stand, commercial and industrial stands are to be allocated in the beneficiary’s name because the employee is deceased.
“Council must also pay for Mr Maligwa’s outstanding motor vehicle on a pro-rata basis to the deceased estate a gross total of US$88 500 (payable at the interbank rate) subject to statutory deductions.
“Council was supposed to buy a vehicle for Mr Maligwa from the time he assumed duty on April 3, 2017. At the time of his death council had not procured the vehicle for him, therefore he is entitled to compensation of the vehicle on a pro-rata basis.
“The vehicle that was to be purchased for the Town Clerk as per Circular Number Six of 2014 is a Toyota Landcruiser Prado with an estimated value of US$118 000. According to condition of service for senior managers, council shall purchase a motor vehicle commensurate with the Town Clerk’s status for business and reasonable personal use which shall be sold to him/her after five years at book value.
“Should the Town Clerk or Head of Department resigns or retires or mutually part ways with the council after having served for three years or more, but less than five years, the council shall sell the vehicle to him/her at book value.
“It is against this background that it is recommended that Mr Maligwa be compensated for the vehicle in monetary terms. At the time of his death he had served council for three years and nine months. Therefore, the value of the vehicle on a pro-rata basis is US$88 500,” reads the memo.