Residents sue Local government minister over ‘abuse of devolution funds’

By Mary Taruvinga, Senior Reporter

HARARE residents have taken Local Government and Finance ministers to court seeking to stop the two from disbursing devolution funds towards payment to Geogenix B.V for the Pomona Waste to Energy Project.

The Combined Harare Residents Association (CHRA) also cited the city of Harare (CoH) and Geogenix B.V as a respondent in an urgent chamber application filed through Zimbabwe Lawyers for Human Rights (ZLHR).

CHRA is seeking to bar an order issued by Moyo on July 7 ordering CoH to stop all investigations into the Pomona deal and reverse its suspension.

They want the courts to declare that the directive by Moyo as well as the utilisation of devolution funds to pay Geogenix B. V contractual obligations unlawful.

Council had suspended the project, saying it was signed without the local authority conducting its own feasibility study and appointed a special committee to investigate the deal.

However, earlier this month, Moyo wrote a letter to CoH directing it to immediately stop all investigations into or try to terminate its contract with Geogenix B.V.

“The failure and or neglect to pay the May invoice has serious repercussions, not only with respect to council’s obligations, but also on the government who is the guarantor of the project,” said the Minister.

“Your failure and or neglect to pay has resulted in accumulation of arrears, including interest due to the project.

“In my considered view, the above-mentioned resolutions were gratuitous and not in the interests of the inhabitants of Harare and the public at large, a burden which is now cascading to the inhabitants and therefore cannot be allowed.”

“I accordingly direct, in terms of section 314 (1) of the urban councils’ act [Chapter 29:15], that council immediately rescinds the resolutions cited above, which seek to suspend the contract between the City of Harare and Geogenix B.V on the Pomona Waste to Energy project.”

The controversial US$344 million deal was initiated by the government, while the council handed over its Pomona Dumpsite to Georgenix for free for a period of 30 years.

It is supposed to pay US$40,000 per day to dump waste it has collected at its own cost for the next 30 years at the same dumpsite.

Earlier attempts to have it pay its ballooning debt have been futile.

In a letter written to Moyo dated 18 July 2022, the residents association wrote to Moyo giving him a two day ultimatum to stop interfering with council’s operation, but no action was taken, prompting the current court process.

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