Local Government Minister July Moyo has ordered the City of Harare to withdraw last month’s resolutions that suspended the controversial Pomona waste-to-energy contract awarded to Netherlands-registered Geogenix BV.
A special council meeting chaired by Harare Mayor Jacob Mafume resolved to suspend the deal after councillors heard that it was signed without the council carrying out its own feasibility study, allegedly under pressure from local government minister July Moyo.
During the meeting councilors decided to appoint a Special Committee to investigate the Pomona Waste to Energy Project and report to Council in a fortnight.
In a letter dated July 7 2022 addressed to Mafume, Moyo said the resolutions by law do not remove the responsibilities set out in the contract.
“Pursuant to the passing of the resolutions, your Council, through the office of the Town Clerk advised the Ministry, through a letter dated 10 June 2022, that they were unable to pay the sum invoiced for the month of May. In terms of your contract, the passing of a resolution does not in any way expunge the obligations set out in the contract by operation of law. The obligations remain pending unless and until a consensus is reached by the contracting parties.
“Needless to say, the failure and or neglect to pay the May Invoice has serious repercussions, not only with respect to Council’s obligations, but also on Government who is the Guarantor of the project. Your failure and or neglect to pay has resulted in accumulation of arrears including interest due to the project. In my considered view, the above mentioned resolutions were gratuitous and not in the interests of the inhabitants of Harare and the public at large, a burden which is now cascading to the inhabitants and therefore cannot be allowed.
“In any case, in our reading of your contract with Geogenix B.V there is no provision for unilateral action by either Party to suspend the same. I accordingly direct, in terms of section 314 (1) of the Urban Councils Act [Chapter 29:15], that Council immediately rescinds the resolutions cited above which seek to suspend the contract between the City of Harare and Geogenix B.V on the Pomona,” wrote Moyo.
The letter comes in the wake of Harare refusing to pay a US$780,000 invoice submitted by Geogenix BV for waste management at Pomona dumpsite.
