BUSINESS REPORTER
The City of Harare says it will not pay the over US$700,000 claimed by a company owned by Delish Nguwaya as the contract has been suspended.
In a letter dated July 4, Geo Pomona Waste Management says Harare has defaulted with effect from July 1 and will be charged a penalty of 12% per annum applied pro rata for each day the invoice remained unsettled.
Harare Mayor Jacob Mafume said the operation of the contract remains suspended.
“We have suspended the operation of that contract by way of resolution of council. We see no reason to pay rentals for our own place and to pay someone to give him our garbage,” Mafume told Business Times.
“It is like a farmer paying the baker to use his flour. It does not make sense.That such a letter can be written and be supported by a permanent secretary is beyond belief.”
In the letter, Geo Pomona said the suspension od the project is not governed by the Concession Agreement.
But Mafume said Harare has made its decision.
“As council we manage our process and we have a decision making matrix. Once we make a resolution we are bound by it. We can only reverse it through council,” he said.
“The position is that the contract has been suspende and an investigation is being undertaken and that’s that.”
The Citizens Coalition for Change councillors are pushing for the deal to be cancelled arguing it was finalised when during the period when some councillors had been recalled by the MDC-T’ Douglas Mwonzora.
Geo Pomona is undertaking the €304m Pomona waste to energy project.
The project is being done in phases with waste movement and collection currently underway.
There will be a waste to energy plant which will generate 22MW.
