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Egodini contract mess in new twist

by Staff reporter
6 hrs ago | 206 Views
The Bulawayo City Council has granted the long-stalled Egodini Re-Development Project yet another lifeline after developers Terracotta Trading submitted key documents demanded by the local authority, narrowly avoiding termination of the contract.

According to a council report dated November 13, 2025, Terracotta escaped cancellation after finally producing proof of funding, a performance bond, a revised project structure and a detailed programme of works on October 15. The documents were among several conditions council had set after raising concerns over years of delays and inactivity at the site.

Council had initially issued the developer with a six-month notice of termination in December 2024, citing "abandonment of the site, lack of progress, non-payment of rentals, and failure to submit a detailed programme of works." The notice was later extended to September 12, 2025, as engagements between the parties continued.

A decisive meeting was eventually held on September 16, 2025, during which Terracotta pleaded its case and committed to meeting council's revised conditions. After assessing the documentation submitted the following month, council management recommended that the project be allowed to continue.

"The management committee was satisfied with the responses provided and supports the continuation of the Egodini Re-development Project under the revised consortium," reads part of the council minutes.

Council has now extended the termination notice deadline to September 2, 2026, effectively giving the developer additional time to meet outstanding contractual obligations and revive the troubled project.

However, the reprieve has been accompanied by fresh controversy within council. Management has asked councillors to rescind a resolution passed on September 3, 2025, which allowed councillors to directly engage Terracotta, extended the contract by six months and proposed the convening of an Egodini workshop.

Management argued that the resolution was procedurally flawed because the report on which it was based had been tabled for information only and not for debate or decision-making.

The minutes state that Town Clerk Christopher Dube, as the city's accounting officer and final authority, has sole responsibility for contract administration, acting on the advice of the project manager.

"It was therefore inappropriate for councillors to engage directly with the contractor on contractual issues," the report said, adding that extensions of time fall strictly under the town clerk's administrative mandate.

The recommendation triggered heated debate, with several councillors pushing back against what they perceived as an attempt to sideline elected officials from a high-profile project that has remained incomplete for years.

Councillor Mnneli Thobeka Moyo argued that council could not distance itself from a development of such public importance.

"Councillors have an oversight role to play in shaping the city," Moyo said, according to the minutes. "We should be engaged in contractual issues, especially where the contracts have failed or affect residents."

Councillor Royini Sekete echoed similar sentiments, questioning why Terracotta should be shielded from direct scrutiny when other contractors had previously been summoned before council.

"Previously Terracotta had a meeting with councillors — why not now? It is important for council to engage Terracotta," Sekete said.

The council's legal officer also weighed in, clarifying that there was "no illegality" in councillors meeting the contractor, contradicting earlier suggestions that such engagement amounted to overreach.

Meanwhile, the acting director of works told councillors that Terracotta was restructuring its company and that, according to its newly submitted programme of works, construction on the remaining phases of Egodini Mall is expected to commence in January 2026.

Council ultimately resolved to rescind the September 3, 2025 resolutions relating to Terracotta's contract, while agreeing that a meeting between councillors and the developer would be arranged at a later date.

The Egodini project, envisioned as a modern transport interchange and commercial hub, has suffered repeated delays over several years, making its latest extension yet another test of patience for Bulawayo residents eager to see the development completed.

Source - Southern Eye
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