Harare will not pay even a cent on Pomona deal, Mafume vows

HARARE mayor Jacob Mafume (pictured) says the city council will not pay a cent to Geogenix BV, a company fronted in Zimbabwe by businessman Delish Nguwaya, describing the agreement signed by the local authority as the "mother of all corruption" that has to be stopped immediately.

Under the deal, Harare City Council is supposed to pay Geogenix BV over US$22 000 a day for the first year and will suffer consequences by way of heavy penalties if it fails to fulfil its side of the bargain in a deal that has been frowned upon by residents and stakeholders who say it provides evidence of corruption by government in cahoots with MDC-T councillors.

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, read in part: "On financial matters, as from the commencement date, City of Harare (COH) shall pay the fee to the contractor which shall be equal to the rate of US$40 (excluding applicable value-added tax) per each tonne of waste deposited by COH at the site, operated by the contractor from site's handover date. COH will pay the fee to the contractor within 30 days from the date of the invoice receipt by the contractor."

In the first year, Harare is expected to deliver 550 tonnes a day to Pomona dumpsite and over 200 750 tonnes a year, which translates to US$8 030 000 that will be paid to the Netherlands-based company.

"The contractor has based its business plan and feasibility study on minimum guaranteed waste quantities to be supplied by COH which quantities throughout the term should be for the first year not less than 550 tonnes a day and in any case not less than 200 750 tonnes a year," the agreement reads in part.

"…For the second year not less than 650 tonnes a day (US$26 000) and in any case not less than 237 250 tonnes a year (US$9 490 000). For third year, 750 tonnes a day and 273 750 tonnes a year."

According to the contract, from the fifth year to the end of the contract, council is expected to have 1 000 tonnes a day and not less than 365 000 tonnes a year.

The contract was structured in a way that will see the local authority, which is already struggling with huge debt, paying heavily for failure to pay or delays in payment.

"In case the COH delays in making the payments 60 days from the date of submission of their invoice from the contractor then the contractor has the right, reckoned from lapse of 60 days aforesaid, to extend the term of the construction period for the same period of the payment delay and also to stop providing services to the COH," the deal reads.

Invoices, the deal said, are supposed to be issued within the last day of each month.

"In the event the fee has not been paid within the periods specified in Article 22, the COH shall be liable to pay to the contractor the late payment interest calculated under the applicable law, on the outstanding service fee amounts. Such interest shall be due thirty (30) days after the invoice becoming due and payable."

But in all the drama, councillors linked to the Citizens' Coalition for Change (CCC) are plotting to reverse the transaction, accusing the MDC-T councillors of working in cahoots with government officials led by Local Government minister July Moyo to push for the deal for self-aggrandisement.

"We will not pay even a cent," Mafume told The NewsHawks on Thursday.

"We have not paid anything as yet (and) we urge every stakeholder to continue as normal," he added.

The matter is now being challenged before the courts with Harare North member of Parliament Allan Markham saying there was no due process followed in coming up the deal that will prejudice the local authority and residents.