Kwekwe to pay $900 000 for water

Chief Court Reporter
Kwekwe City Council has been ordered to pay $900 000 for water supplied to it by the Zimbabwe National Water Authority over the past three years. The council, that is groaning under severe liquidity crunch, had water supplies cut off after it failed to honour its obligation with Zinwa two years ago. It then sought a provisional order at the High Court in Bulawayo in November 2014 to restore water supply to it forthwith, pending the finalisation of the matter.

When the provisional order was brought for confirmation later the following year, Kwekwe City failed to defend its position. In a judgment made available recently, Justice Lawrence Kamocha discharged the provisional order with costs. This means Kwekwe City has to fork out more than $894 802,94 to pay Zinwa.

The dispute over the water bill spilled into the High Court after Kwekwe City breached the contract signed between the two parties. The parties signed an agreement on February 15, 2013 for the provision of water, with Zinwa being the provider of the precious liquid to the gold mining town.

According to the agreement, KCC would be billed on a monthly basis for the 30 000 megalitres per year allocated to it. The national blend price was $6 per megalitre, water levy of $1,06 per mega- litre and sub-catchment rate of $1 plus 15 percent VAT.

The court noted in its judgment that despite failure by KCC to pay for the water, Zinwa had continued supplying the council with water.