A Trade Union that represents Council workers in Zambia has revealed that the Ministry of Finance has not disbursed the equalization fund to local authorities for the month of July.
Zambia United Local Authority Workers Union General Secretary Emmanuel Mwinsa tells Money FM that most Local authorities have not received the equalization fund for the month of July which is against the stipulated agreement.
Mr. Mwinsa adds that delays to pay workers on time has a negative effect as it has the potential to reduce morale in the workers who must contribute to national development in their various Local authorities across Zambia.
He observes that some local authorities across the country cannot on their own mobilize enough resources to settle salaries hence some of the Councils depend on the equalization fund to meet salary obligations.
Meanwhile in January this year, government had threatened to stop the disbursement of the equalization fund to councils if the local authorities continue diverting the money to workers’ salaries instead of investing in capital projects.
The equalization fund is five percent of the income tax returns for each council and this amount increases annually as the tax base for each council increases.