HARARE – Harare councillors on Thursday resolved to suspend the Pomona waste-to-energy contract awarded to Netherlands-registered Geogenic BV, while setting up a committee to review the US$344 million transaction.
Mayor Jacob Mafume chaired a special council meeting now dominated by the Citizens Coalition for Change’s councillors who took control of the local authority following by-elections in March.
The decision to suspend the contract came after councillors heard that it was signed without the council carrying out its own feasibility study, allegedly under pressure from local government minister July Moyo.
Mafume railed at “sheepish” council officials who signed the deal without looking at the consequences on ratepayers and called the deal “the mother of all corruption”.
It was revealed during the meeting that council officials followed directives from the Office of the President and Cabinet, the Ministry of Finance, the Attorney General’s Office, the Zimbabwe Investment and Development Agency (ZIDA), and the Zimbabwe Electricity Supply Authority (ZESA) without consulting residents.
Harare will pay Geogenix BV US$40 per tonne delivered. The stipulated daily delivery is at least 550 tonnes or a minimum 200,750 tonnes per year – translating to US$8.03 million for Geogenix BV in the first year.
By the second year, the daily tonnage will rise to 650; going up to 750 in the third year; 850 in the fourth year and 1,000 tonnes per day at the start of the fifth year, meaning Harare will pay Geogenix BV a minimum US$14.6 million annually starting in 2027 until 2052.
The agreement says should Harare fail to meet the minimum quantities, the city will still be invoiced as though it made the deliveries to meet the minimum annual guaranteed waste quantity.
“The payment of the annual minimum guaranteed amount shall not be contested or disputed by the City of Harare throughout the term (30 years),” the agreement says.
Should the City of Harare decide to terminate the contract or fail to honour the terms, it would pay Geogenix US$3.5 million.
Geogenix is fronted, in Zimbabwe, by Dilesh Nguwaya, an associate of President Emmerson Mnangagwa’s twin sons Sean and Collins. The company was previously known as Integrated Energy BV but changed its name after its owners led by Albanian Mirel Mërtiri faced corruption allegations in their home country over waste incinerators.
The contract was pushed through cabinet in February this year. Under the deal, the investor would design, build, operate and transfer the Pomona waste management facility to Harare after 30 years.
Mafume fumed at council employees describing them as “sheepish” after allegedly doing Geogenix BV’s bidding at the expense of the residents’ interests.
Said the mayor: “Why are we supposed to pay a tenant for our property? What are we going to get after carrying the rubbish to Pomona?
“Council officials were sheepish in following everything. Nowhere in the presentation made here (by the city’s engineers) was it was mentioned that they said no to the deal. The residents don’t expect us to be pushed around by the offices that participated.”
Mafume said he was concerned that the city keeps on losing its properties to government arms.
“We keep losing everything. Every decision is being taken against Harare City Council to the extent of taking a dumpsite. Everything is being taken from us. Why should you take orders from other people? Are they God? Who will defend the city if we allow it to be abused? This is a time we should say enough is enough.”
The contract was awarded without public tendering, councillors heard. It was signed after minister Moyo conspired with MDC Alliance councillors aligned with MDC-T leader Douglas Mwonzora rushed the agreement through council before CCC councillors were elected.
During the special council meeting, former acting mayor Stewart Mutizwa unsuccessfully attempted to stop the discussion on Pomona, claiming it was sub judice. He was overruled.
Apart from appointing a committee to report within 14 days over the deal, councillors also resolved to withdraw opposing papers in a High Court challenge brought by residents seeking to nullify the contract.
