GOVERNMENT 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
0 comments:
Post a Comment