Harare – Government has with immediate effect banned foreign travel, out of town workshops and the purchase of luxury vehicles for council bosses at local authorities that have failed to pay workers and remit statutory obligations.

The tough measures are contained in Local Authorities Circular Number 9 of 2026 issued on 20 October 2026 by the Permanent Secretary for Local Government and Public Works, Engineer Tafadzwa Muguti.

Eng. Muguti said Government has been forced to act after it emerged that some councils have accumulated salary arrears spanning several months, together with outstanding statutory obligations such as Pay As You Eearn, National Social Security Authority, Zimbabwe Revenue Authority and pension contributions.

“The Ministry has noted with serious concern that some Local Authorities have accumulated salary arrears spanning several months, together with outstanding statutory obligations. This situation is unacceptable, as it adversely affects the welfare and livelihoods of employees, undermines staff morale, compromises productivity, and ultimately impairs the capacity of Local Authorities to deliver essential services to residents,” said Eng. Muguti in the circular.

He added that councils must now put workers first before luxuries.

“The Ministry reiterates that the timely payment of salaries and the settlement of statutory obligations must be treated as priority financial commitments. Local Authorities are expected to exercise prudent financial management, strengthen revenue collection, control expenditure, and ensure that available resources are directed towards meeting their core obligations before committing funds to non-essential expenditure,” he said.

The most topical and controversial issue raised in the circular, which has drawn sharp reactions from residents and workers’ unions, is the continued purchase of luxury personal-issue vehicles for senior managers while workers wallow in poverty.

Eng. Muguti said Government has now suspended that practice outright.

“Local Authorities with outstanding salary arrears or statutory obligations shall not purchase vehicles intended for personal allocation, personal issue, or as a condition of service for senior managers and other officers. This restriction shall remain in force until the outstanding statutory obligations have been fully settled and salary arrears cleared,” reads the circular.

This comes at a time when several urban and rural councils have been exposed for buying top-of-the-range Toyota Fortuners, Toyota Prado, Toyota Hilux double cabs and Ford Rangers for town clerks, directors and mayors, while general workers have gone for six to twelve months without salaries. In some cases, councils owe millions in unremitted statutory deductions, leaving workers without medical aid and pension cover.

On foreign travel, which has also become a major drain on council finances, Eng. Muguti was equally blunt. He said no council that owes workers will be allowed to send officials outside the country.

“No Local Authority with outstanding salary arrears shall be permitted to undertake foreign travel for its officials until the salary arrears have been cleared. Requests for foreign travel authorisation shall not be considered favourably where the concerned Local Authority has failed to meet its salary obligations,” he said.

In another major clampdown, Government has also banned the holding of workshops, retreats and conferences outside council jurisdictions, a practice that has seen councils splashing thousands of dollars on hotels in Victoria Falls, Nyanga, Kariba and Mutare under the guise of strategic planning.

“Local Authorities with outstanding salary arrears shall not conduct workshops, retreats, conferences, or similar activities outside their respective areas of jurisdiction. Such activities shall, where necessary, be conducted within the respective Local Authority’s area of jurisdiction, subject to budgetary availability and demonstrable operational necessity,” Eng. Muguti said.

He however said Government will still allow councils to buy vehicles that are directly linked to service delivery.

“Notwithstanding the foregoing restrictions, Local Authorities experiencing salary and statutory obligation arrears may procure vehicles and capital equipment strictly required for essential service delivery and critical infrastructure operations. Such purchases must be demonstrably necessary, adequately justified, provided for in approved budgets, and undertaken in compliance with applicable procurement legislation,” the circular says.

To enforce compliance, all local authorities have been ordered to submit detailed reports on their current salary arrears, outstanding statutory obligations and proposed settlement plans. They are also required to prepare time-bound financial recovery plans clearly indicating total liabilities, measures to improve revenue collection and expenditure control and timelines for clearing the arrears.

“Town Clerks, Town Secretaries, Chief Executive Officers, and other accounting officers are expected to exercise firm financial discipline and ensure that expenditure decisions are consistent with the financial position and statutory responsibilities of their respective institutions,” said Eng. Muguti.

He warned that Government will be monitoring compliance closely and will not hesitate to act against defiant councils.

“The Ministry will monitor compliance with this Circular and may take appropriate administrative measures, within its statutory mandate, in respect of Local Authorities that fail to comply with these directives,” he said.

Eng. Muguti said the measures are meant to restore sanity in councils and protect workers.

“The above measures are intended to promote financial discipline, protect the welfare of employees, safeguard statutory compliance, and ensure that public resources are prioritised towards essential service delivery rather than non-essential travel, workshops, and personal benefits,” he said.

The circular was copied to the Minister of Local Government and Public Works Daniel Garwe, Chief Secretary to the President and Cabinet Dr Martin Rushwaya, Deputy Ministers Eng. Benjamin Kabikira and Albert Mavunga, Permanent Secretary for Finance, Economic Development and Investment Promotion, George Guvamatanga and Chairman of the Local Government Board Mr S. Chakaipa.