The Bulawayo City Council is facing a staggering financial blow as millions of dollars in potential revenue are lost to the illegal leasing of council property by both current and former employees.
Shockingly, unlicensed shops have proliferated throughout the city, further exacerbating the issue by failing to pay necessary license fees and penalties, leaving the council deprived of much-needed funds.
These revelations paint a dire picture of a municipality struggling to regain its financial footing.
Workers, already facing financial struggles, are forced to pay private landlords for their rentals while council-owned properties that should provide relief are illegally occupied by non-employees.
Recent revelations have exposed that 90% of security guard houses have been leased out by former employees, who reap profits.
According to the report, out of 142 houses specifically designated for security guards in the Makokoba suburb, a mere 15 were occupied by council employees as initially intended under the Bulawayo Municipal Council (BMC) Security Council Compound.
Despite the lease agreement stipulating a monthly rental fee of US$35, the vast majority of tenants occupying these properties – a staggering 90% – were non-council employees.
“Subletting was a norm at Bulawayo Municipal Council (security compound), which was mostly done by former council staff,” the report reads.
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“When they reached retirement age they held onto the premises resulting in subletting which was against council by-laws.
“Some tenants use these housing units as brothels.
“The housing units were now congested resulting in the property maintenance cost being expensive.”
This issue has been flagged by workers several times in the past.
Following the expose, councillors passed a resolution to serve eviction notices to 127 former council employees who were found to be subletting council properties, in violation of by-laws.
However, these eviction notices have been met with resistance by the former employees who claim that they received nothing in severance packages after years of loyal service to the local authority.
This subletting issue is reportedly being perpetuated by retired employees, who have turned these housing units into brothels, resulting in high maintenance costs
Previous council reports have shown that the local authority has lost millions of dollars over the years due to unlicensed rentable properties.
These shops have no development permits, rendering them illegal and further compounding the council financial woes.
Despite the existence of a Bulawayo City Council draft policy on small lettable unit shops in the central business district, authorities are pushing to close down shops that operate without permits.
This has caused an uproar among business owners, who fear for the future of their livelihoods, and has raised questions about the council’s commitment to supporting small businesses in the area.
Meanwhile, property lease scams are causing the BCC to lose out on significant revenue, as tenants pay their rent to individuals rather than the local authority.
This issue was recently highlighted when the council sued Duly’s Motors for subletting tenants in its basement parking.
According to a letter from the BCC’s engineering services department, dated February 3rd, commercial activities are strictly prohibited within the basement parking facility.
