Pomona Scandal: July Moyo forcing HCC to pay US$780k to Nguwaya company
Minister of Local Government July Moyo has disregarded the recent resolution made by the Harare City Council to suspend the Pomona Waste to Energy deal, instead he has ordered the local authority to pay US$780,000 to Geogenix B.V, a shadowy company linked President Emmerson Mnangagwa’s son Collins and family friend Delish Nguwaya.
Moyo instructed HCC to give Pomona dumpsite for free to the Netherlands based company in a US$344 million tender that caused public outcry due to its outrageous terms and conditions.
The company is expected to turn waste into energy with HCC paying at least US$22 000 per day. During the last couple of weeks, the debt has already accumulated to US$780,000. HCC indicated it did not have the capacity to pay. But the Minister in his latest letter is forcing it to pay.
“I have taken note of the contents of the letter dated 10 June 2022 in which you state that you are unable to pay the invoice raised by Geo Pomona in the amount of US$780 890 for the month of May,” said local government permanent secretary Zvinechimwe Churu in the letter which was addressed to Harare’s town clerk.
“May I remind you that the action not to pay has serious consequences, not only with respect to council’s obligations but also on the government who is the guarantor of the project.
“Failure to pay will result in accumulation of debt through interest, arrears, penalties and fees due and payable.”
He added: “The amount will become unsustainable should the stance be sustained beyond the May payment.
“We request a response from you that you will honour the bill for May as well as the other coming months as they fall due.
“It is thus our expectation that the operations at Pomona should continue uninterrupted and the council shall abide by the contractual terms provided for in the existing contract.”
The deal was signed while substantive Harare Mayor Jacob Mafume was strategically suspended by Moyo. When Mafume led CCC councillors to terminate the deal, Moyo said the move could not happen because the deal had been endorsed by Mnangagwa’s cabinet.
Residents are expected to pay Geogenix B.V a minimum of US$22,000 a day to dump rubbish there or more if it exceeds 500 tonnes then up to US$40 000 a day.
The controversial company is from Albania, allegedly linked with Collins Mnangagwa and chaperoned by Nguwaya.