News / National
CCC councillors squander millions in shady water deals
06 Sep 2024 at 14:51hrs | Views
The Harare City Council (HCC) is reportedly wasting US$300,000 per month on water treatment chemicals from third-party suppliers, despite having a US$5.4 million contract with South African company Nanotech Water Solutions.
The council paid over US$1 million to Nanotech in 2022, but has since reneged on the deal, leading to unnecessary spending of US$3.6 million annually.
Nanotech is threatening legal action to enforce the contract, which could save the city approximately US$300,000 monthly.
The dispute arose when HCC demanded acquittals for the initial payment before the project was completed, which Nanotech contends will only be provided upon completion, as agreed.
The situation is highlighted in an audit that also reveals ongoing questionable procurement practices by the council.
Nanotech has installed chlorine dioxide generators at Morton Jaffray Water Works but has struggled to receive further payments.
The audit recommends that HCC honors its obligations to avoid further financial losses and legal complications.
The council paid over US$1 million to Nanotech in 2022, but has since reneged on the deal, leading to unnecessary spending of US$3.6 million annually.
Nanotech is threatening legal action to enforce the contract, which could save the city approximately US$300,000 monthly.
The dispute arose when HCC demanded acquittals for the initial payment before the project was completed, which Nanotech contends will only be provided upon completion, as agreed.
The situation is highlighted in an audit that also reveals ongoing questionable procurement practices by the council.
Nanotech has installed chlorine dioxide generators at Morton Jaffray Water Works but has struggled to receive further payments.
The audit recommends that HCC honors its obligations to avoid further financial losses and legal complications.
Source - the independent
