HARARE City Council has told government to use its devolution funds to pay off the ballooning Pomona debt, after sustained pressure by local government minister, July Moyo.
Moyo is said to have personally ensured council agrees to the controversial Pomona waste to energy deal being run by Netherlands based investor Geogenix BV is being questioned.
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Harare mayor, Jacob Mafume, told journalists Monday that they will now take receipts to government, which will then take care of the US$1 million monthly bill, even though the Citizens Coalition for Change (CCC) dominated council had initially disputed legality of such a move.
Mafume said paying the bill from council’s purse was not in the interest of the public and will be resisted.
“As council we do not have money. If the ministry wants the money to be paid, they made a guarantee as government and said they will use devolution funds. We will take the receipts to them, so they pay from that side,” said Mafume.
“We will be exercising our option in terms of the law on what to do with the position they have but as for now, we as the council do not have the money to pay US$1 million per month to the company called Geogenix because as the councillors have said, we do not see what we are paying for when they had said they would give us the money, but we have not received it and the electricity but we are being told to give them money amounting to US$1 million per month.”
Moyo first threatened to use the capital’s devolution funds to settle the debt last month as Harare City Council argued it had to investigate origin, applicability of the deal and whether it would benefit it.
The investigation has since been ordered to stop by Moyo.
Geogenix BV local representative, Delish Nguwaya is on record bragging that the money owed will be paid, whether CCC councillors resist the deal or not.