Govt, Harare tussle for $2.4bn devolution funds

MOSES MATENGA

Harare said it was engaging lawyers to reclaim from the government over ZWL$2bn of its devolution allocation that was used to pay for the waste-to-energy Pomona deal to Geogenix BV as the battle for the control of the dumpsite climaxes.

Last week, a ministerial team visited the Pomona dumpsite, the site of the US$300 million deal touted as a positive by the government for energy production from waste while it is frowned upon by the local authority as a corrupt arrangement.

National Housing Minister Daniel Garwe, speaking after the tour last week, said the government will move over 500 people from the dumpsite and accommodate them in other areas insisting nothing will stop the deal signed by MDC-T councillors in February before being blocked by Citizens Coalition for Change who returned to town house after the March by-elections.

Local Government and Public Works Deputy Minister Marian Chombo said the government has paid its dues to the Netherland based firm, a position confirmed by Information Permanent Secretary Ndavaningi Mangwana who said the country respected contractual obligations.

But Harare Mayor Jacob Mafume told Business Times that the council was objecting to the government using its devolution money to pay Geogenix BV.

“As far as the council is concerned, we cancelled the contract, we don’t have money to pay,” Mafume said. “We have nothing to do with that contract, we have not authorised government to use our devolution funds to pay for that contract.”

“What we want is our dumpsite back and we will be engaging our lawyers to see how we can move around the reversal of our resolution by the Minister,” Mafume said.

Asked how the local authority will proceed with the matter given the government’s commitment to paying, Mafume said: “No ministerial committee has authority. We want to use our devolution funds to buy equipment for water, equipment for refuse collection, equipment for cleaning the drainage. Government has $2.4bn that it owes us in devolution money and we could have used to put a compactor for every ward.”

Legal experts say it is illegal for the government to use devolution funds without proper legislation.

Under the deal, Harare is expected to pay US$22 000 a day for dumping litter at the Pomona dumpsite.

The transaction under a deal titled Concession Agreement to Design, Build and Operate the Harare Pomona Waste Management Facility and Waste to Energy Power Plant will see council paying US$40 (excluding applicable value added tax) per each tonne of waste deposited by Harare at the site.

Harare will pay the fee to the contractor within 30 days from the date of the invoice receipt by the contractor.