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The city secured a US$7 million loan from BancABC last year. Only US$3,5 million was used in the purchase of the 18 trucks. When the city wanted payment for the remaining nine refuse trucks and four compactors, the bank said it would no longer finance the purchase.
Mayor Muchadeyi Masunda blamed the “ongoing liquidity crunch” for spoiling the deal.
He said council would “exhaust all options with BancABC first before approaching other financial institutions”.
The matter was also discussed during Tuesday’s full council meeting with councillors expressing worry over delays in securing the vehicles.
Clr Girisoti Mandere inquired why there were delays in securing the refuse trucks. The supplier Pazza Buster has already brought the vehicles into Zimbabwe and according to the sale agreement – the vehicles could only be released to council upon payment.
Acting town clerk Mrs Josephine Ncube confirmed that delivery of the vehicles to the city was being delayed by non-payment.
She said council was now negotiating with MetBank for a US$2 million loan facility.
“We are negotiating for another facility with MetBank,” she said.
Following intense debate on the matter the councillors resolved to approve the loan offer from the MetBank.
Online Reporter