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Contractor spills the beans on Harare City Council

by Staff reporter
10 Sep 2024 at 07:24hrs | Views
Nanotech Solutions, a company contracted by Harare City Council (HCC) to install cost-efficient water treatment technology at Morton Jaffray Water Treatment Plant, has accused councillors and senior officials of sabotaging the US$5.4 million project. The company claims the project has stalled due to demands for kickbacks by certain council members.

Nanotech manager Joe Rugwete revealed that equipment for the project has been lying idle for three years. Speaking to NewsDay, Rugwete said the issue is being addressed through various channels, including a commission of inquiry into the City of Harare and the Ministry of Local Government. He also welcomed the involvement of the Zimbabwe Anti-Corruption Commission (Zacc) and expressed readiness to provide documents listing the councillors and city officials who allegedly solicited bribes.

"We will gladly share all information we have on the rent-seeking behaviour of some councillors and city officials with Zacc," Rugwete said.

Harare mayor Jacob Mafume, however, denied receiving any documentation implicating officials in corruption. He stated, "They are yet to present any documentation to my office. I am eager to see it, and we are prepared to pay them once the issue of acquittals is finalised."

According to an audit report, Nanotech Solutions was contracted by HCC to supply, install, and maintain chlorine dioxide water treatment technology, a system expected to alleviate Harare's ongoing water crisis. The project, valued at US$5.37 million, was formalized in May 2020 following successful plant trials in early 2019.

Despite initial progress, the project has faced numerous delays due to financial disputes and procedural complications. Payments were initially agreed upon in three equal instalments of US$1.79 million, but later revised to two payments of US$2.685 million. A major impasse arose over the acquittal of US$1,068,013 advanced to Nanotech, which remains unresolved.

Nanotech argues that the project operates under an engineering, procurement, construction, and financing contract, which does not require traditional bills of entry for acquittal until project completion. Despite the successful installation of equipment and trial runs, further payments have been stalled by the city's finance department, citing a lack of proper acquittals.

The audit report recommended that Harare City Council fulfil its contractual obligations, including registering the service contract with the Reserve Bank to resolve the financial dispute. It also stressed the importance of involving the city's finance director in contract negotiations to avoid future misunderstandings. Additionally, the report highlighted concerns over potential wear and tear on the machinery already installed at Morton Jaffray Water Works.

This project, which was once seen as a potential solution to Harare's water challenges, remains in limbo as the conflict between Nanotech and HCC continues.


Source - newsday