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Trust Freddy
Herald Correspondent
HARARE City Council is at the centre of a storm as it seeks permission to borrow US$21 million to buy new compactors and equipment, despite failing to deliver US$1,8 million worth of compactors procured eight years ago.
The move has left residents outraged, questioning the council’s motives and wondering why they should trust the city authorities when they have failed to provide an update regarding the non-delivery of the fully paid US$1,3 million compactors since 2017.
The city reportedly lost over US$1,8 million in two separate deals for refuse trucks after the supplier failed to deliver some of the vehicles in the first contract and supplied others that did not meet specifications in the second transaction.
Allegations are that Mass Breed Investments, trading as FAW Zimbabwe, was contracted by Harare City to supply 30 refuse compactors on May 11, 2017 in a deal worth US$3 095 514.
The company was engaged again on September 25 of the same year for the supply of 10 double skip bin trucks valued at US$1 529 999.
However, the company only supplied 15 trucks under the first deal, prejudicing council of US$1,55 million while in the second deal, the company supplied single skip bin trucks instead of double bin skip trucks, costing council approximately US$330 000.
According to the council, the full amount for the supply and delivery of the 30 refuse compactors was paid on May 23, 2017, and they were supposed to have been delivered within two weeks, but the company failed to meet its contractual obligations.
The matter, which appeared to have been buried, was revived when the Harare City Council officials met with residents last Wednesday, where it proposed to buy five new compactors at US$600 000 from the over US$21 million it is seeking to borrow.
Speaking during the engagement, Mr Rueben Akili, director of the Combined Harare Residents Association, said there was no justification in borrowing US$21 million without first recovering the missing funds.
“The local authority purchased 15 refuse trucks in 2017 from a company here in Zimbabwe and those 15 refuse trucks have not yet been delivered,” said Mr Akili.
“And the same local authority is also looking for borrowing powers to purchase refuse trucks, you know, when we had also previously bought refuse trucks and were not delivered.
“So when you look at that, it then creates perceptions that there will probably be some underhand dealings around such issues.”
Mr Akili said it was worrying that the council was yet to come back to residents and explain where the money had gone since 2017.
“So those are some of the issues now; it then creates perceptions that money is being stolen,” he said.
Harare mayor, Councillor Jacob Mafume, acknowledged that the 15 refuse compactors were yet to be delivered, saying he was not yet in office when the procurement was made.
“There was a difficulty in procuring the foreign currency element, and it’s more complex than it seems,” he said.
“Because our importing system requires us, as the council, to pay in local currency, with the understanding that foreign currency would then be availed to the supplier.
“And then, when that amount is not availed timeously, prices change. We are in what we call a Mexican standoff with the supplier.
“The council is saying we paid you in full; it was your job to source your foreign currency. The supplier is saying, ‘Look, you’re aware of what’s been happening in the economy.'”
When The Herald contacted Mass Breed Investments, the questions were directed to the company’s legal officer, Ms Nomsa Muzvidziwa, who declined to comment, saying the issue was already before the High Court.
“We appreciate your efforts in seeking a comment from us, but since the matter is a civil case currently before the High Court, having been filed in 2022, I regret that I cannot comment on it,” she said.
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