adminTrust Freddy, Herald Correspondent
Harare City Council is embroiled in yet another dubious deal after paying US$1,1 million in advance in 2022 from Devolution Funds to a South African company for chlorine dioxide water treatment technology at Morton Jaffray Water Treatment Works, but with nothing yet commissioned.
This development comes amid revelations that only US$189 000 of the US$1,1 million advance payment has been accounted for, according to minutes from the Environmental Management Committee meeting held recently.
However, the City Council has reportedly appointed a special committee to investigate the performance of the contract awarded to Nanotech Water Solutions (Pvt) Ltd of South Africa.
Allegations are that in 2020, Nanotech Water Solutions (Pvt) Ltd was awarded a contract for supplying, installing, and commissioning chlorine dioxide water treatment technology at Morton Jaffray Water Treatment Works with payment made in 2022.
However, Harare City Council knew that both the local representatives and South African company directors of Nanotech Water Solutions reportedly did not follow the country’s exchange control regulations.
“We seem to have another Goatgate scandal on our hands. While councillors have attempted to launch an investigation to uncover how the funds were used, the acquittal process has been met with serious resistance from administrative staff raising the question if they are beneficiaries of the current status quo,” an insider said.
In September 2022, council announced it was on the cusp of saving up to US$300,000 per month by using an alternative water treatment process at Morton Jaffray Water Treatment Works. This was to follow after the implementation of the Nanotech deal.
It is alleged that the acting finance director Mr Godfrey Kusangaya, during a special council meeting, highlighted the financial benefits of the Nanotech deal, emphasising potential monthly savings of over US$300 000.
“Once we start producing chemicals locally, we will also mitigate current chemical shortages,” Mr Kusangaya reportedly told the special council meeting.
An unnamed Nanotech operations manager reportedly expressed the company’s readiness to start work upon receiving the initial payment.
“We are not here to be suppliers but to partner with you in the long term. As soon as we have feedback and know the money is in our bank, we can action that. We have prepared everything,” he said back in September 2022.
According to insiders, the payment was subsequently made in December 2022.
Nanotech reportedly pledged to upgrade the plant with disinfection and manufacturing solutions; long term, they would start addressing capacity at Morton Jaffray to increase it and also improve reticulation.
Despite the initial optimism, councillors are reportedly raising concerns over the lack of progress.
According to minutes from the Environmental Management Committee meeting held recently only US$189 000 of the US$1.1 million advance payment has been acquitted.
Mr Kusangaya reported that Nanotech had not provided the acquittals required by the Reserve Bank of Zimbabwe as required by the Exchange Control Act.
“The chairperson of the Environment Management Committee reported that she had visited Morton Jaffray Water Treatment Works and had observed the works that had been set up by Nanotech Water Solutions (Pvt) Ltd but wondered why there was no production,” read council minutes.
Councillors are now calling for a thorough investigation by the Audit Committee into the use of the oney and the incomplete acquittals. Council also resolved to terminate the non-performing contract and recover public funds.
Councillors stressed the need to understand how the contract was awarded and whether legal procedures were followed. The Environmental Management Committee minutes from May 9, 2024, reveal ongoing concerns about the delays in reporting and the need for critical decisions regarding Harare’s water supply solutions.
The committee noted the importance of not engaging other companies while the contract with Nanotech remained active unless it was terminated even in the face of poor quality supply of water to residents.
Meanwhile, council has requested a comprehensive report from the Director of Works on Tamira Investments, another company engaged by council and paid in advance for constructing a modern laboratory, which is also facing scrutiny.
This also comes as four Harare City Council officials were arrested earlier this week on account of fraudulently awarding a US$9 million street lights tender to Juluka Enndo Joint Venture without following proper due process.
The Nanotech scandal unfolds as Harare’s water situation remains critical, affecting people’s rights to water, sanitation and health.
Online Reporter
dyton mupawaenda