HCC frustrating Pomona investors: Govt

THE Local Government ministry has accused the Harare City Council (HCC) of frustrating “investors” regarding the US$340 million Pomona waste to energy deal.

Government and HCC are at loggerheads over the costly waste management deal after Harare mayor Jacob Mafume refused to pay US$1,5 million owed to Geogenix BV, a Netherlands-based company that clinched the deal.

The Pomona deal will cost HCC at least US$22 000 per day to dump waste at Pomona dumpsite for the next 30 years.

In a statement yesterday, Local Government and Public Works secretary Zvinechimwe Churu said government was concerned that some councillors were determined to frustrate the smooth implementation of the agreement which was put in place by the same council.

“The government takes note with concern that there are belligerent councillors within City of Harare, who include the mayor, who are determined to frustrate the smooth implementation of this agreement, which was put in place by the same council.

“These councillors are seizing every opportunity to go to the Press to vilify the government on a partnership that was consummated by council itself.

“Government does not find such conduct acceptable as it amounts to political grandstanding on a very serious matter.

“The city faces a crisis of major proportions with respect to collection of waste as well as its management and this deal is a first major step towards boldly dealing with this challenge.

“The errant councillors should seriously focus on cleaning up the city which is now an eyesore instead of picking up fights with investors and embroiling the government in the process,” read the statement.

Churu said council officials were determined to terminate the agreement with Geogenix, and in the process pay the US$3,5 million termination fees.

“It is apparent that these councillors are prepared to fork out this amount in ratepayers’ money regardless of the far-reaching implications that such termination will occasion on the inhabitants of the city.

“In the meeting held with council officials, there was determination on the part of the mayor to terminate the agreement with Geogenix and in the process pay the joint venture partner US$3,5 million,” Churu’s statement further read.

After Mafume refused to pay the bill, Moyo engaged him in a meeting on Wednesday where it was resolved that government would take over the bill.-newsday