Govt has ordered Harare City Council (HCC) to pay all costs to be incurred by Netherlands-based Geogenix BV which was contracted to run the controversial Pomona waste management deal.
The controversial deal, set to run for 30 years, will see HCC paying over US$240 million to Geogenix BV.
In a letter dated June 16, addressed to acting town clerk Phakamile Moyo, Local Government secretary Zvinechimwe Churu said HCC must pay Geogenix BV as failure to do so would have serious consequences, not only to council but also government as project guarantor.
The letter was copied to Local Government and Public Works minister July Moyo, Harare Metropolitan Affairs minister Oliver Chidawu, Chief Secretary to the President and Cabinet Misheck Sibanda, Deputy Chief Secretary to the President and Cabinet Amos Marawa and Georgenix executive chairman Delish Nguwaya.
“I have taken note of the contents of the letter dated June 10 2022 in which you state that you are unable to pay the invoice raised by GEO Pomona in the amount of US$780 890.00 for the month of May,” read Churu’s letter in part.
“Failure to pay will result in accumulation of debt through interest, arrears, penalties and fees due and payable. The amount will become unsustainable should this stance be sustained beyond the May payment.”
“We request a response from yourselves that you will honour the bill for May as well as the other coming months as they fall due. It is thus our expectation that the operations at Pomona should continue uninterrupted and the council should abide by the contractual terms provided for in the existing contract.
Geogenix BV bosses flew into the country last Thursday as they urgently seek to save the deal from collapsing following protests by residents. – Newsday