US$816 000 for chemicals vanishes as Harare runs dry

Harare City Council could have lost US$816,000 in public funds due to alleged misconduct by water treatment chemicals supplier, Nanotech Water Solutions. The company reportedly acquitted only US$252,000 from the US$1.1 million provided through Devolution Funds to improve the city's water purification system.

Since October 2023, the Ministry of Local Government and Public Works has been requesting acquittals for the funds, which were disbursed by the Reserve Bank of Zimbabwe (RBZ) for the first phase of a project aimed at enhancing water treatment at the Morton Jaffray Water Treatment Plant. However, concerns have emerged that Nanotech may have misappropriated the money, leading to the involvement of the Zimbabwe Anti-Corruption Commission (ZACC).

The funds were allocated to cover the mobilisation, installation of equipment, and the supply and dosing of precursor chemicals for on-site chlorine dioxide generation—a powerful disinfection agent for water purification. A letter dated October 2, 2023, from the Ministry of Local Government to Harare's town clerk, Hosiah Chisango, indicated that the acquittals for these funds should have been completed within four days of receipt.

"To that effect, the Reserve Bank of Zimbabwe disbursed US$1,100,000 in December 2022 to cover mobilisation, installation of equipment, supply, delivery, and dosing of precursor chemicals for the 1st Phase of the project," the letter stated. It also noted that the Ministry requested acquittals by October 6, 2023, as part of the ongoing Devolution portfolio oversight.

Documents reveal that out of the US$1.1 million allocated, only US$252,313.16 was accounted for, leaving US$815,686.84 unacquitted. This prompted Harare City Council to terminate its contract with Nanotech in a resolution passed on July 15, 2024.

Audit committee minutes from August 15, 2024, further recommended that the matter be referred to ZACC due to irregularities in Nanotech's contract performance. The supplier failed to deliver necessary equipment and chemicals to Morton Jaffray within the agreed three-month period and did not acquit receipts for the funds disbursed by the RBZ, violating exchange control regulations.

Additionally, the Public Procurement and Disposal of Public Assets Act [Chapter 22:23] was breached due to irregularities in contract performance and variation without proper documentation. The Urban Councils Act [Chapter 29:15] may have also been violated, particularly regarding breaches of contract and potential corruption.

Residents and stakeholders have voiced frustration over the City Council's failure to prioritize essential services like water supply. During a tour of the Morton Jaffray Water Treatment Plant on Tuesday, Harare residents expressed their dissatisfaction with council operations.

Zimbabwe National Organisation of Associations and Residents Trust chairman, Mr. Shalvar Chikomba, criticized the council, stating, "Council is constantly blaming ratepayers for things they are supposed to be doing. Despite us paying our rates, what has been done to ensure that our water pipes are upgraded?"

Minister of State for Harare Metropolitan Province, Charles Tavengwa, also raised concerns about water safety, urging the council to assure residents that tap water was safe to drink.

The matter is now under investigation by ZACC, as city officials grapple with mounting pressure to address corruption and improve service delivery amidst Harare's ongoing water crisis.