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Harare City Council Suspends US$344 Million Pomona deal

Harare City Council Suspends US$344 Million Pomona deal

The City of Harare has suspended the US$344 million Pomona deal between Harare and Albanian entity Geogenix BV.

This was agreed upon during a Thursday Special Council meeting held at Town House. It was chaired by Mayor Jacob Mafume, a councillor for the Citizens Coalition for Change (CCC).

The move follows public outroar over the deal which is said to be a scheme by some politicians in high offices to fleece the country.

Councillors have also agreed that a Committee should be appointed to review the agreement.

Harare Open Council cites former NetOne CEO Reward Kangai as saying the way the agreement was crafted shows that the deal may not be defeated by generic channels such as these resolutions. He said:

So-called Pomona Waste Management contract should bring an awareness of a new and wickedly crafted form of fraud and corruption, i.e. sign a contract that’s impossible to perform, forcing another party to seek termination and then get paid outrageous amounts for breach.

According to the Harare-Geogenix BV agreement, Harare should pay US$40 per tonne of garbage for the estimated 550 tonnes per day delivery or a damage fee of US$3.5 million.

Harare does not have the capacity to deliver 550 tonnes of garbage per day and is expected to fail.

The deal is similar to the one which NetOne entered into in 2016.

According to the then NetOne lawyer Nobert Muhlolo, the company and Formula Telecom Solutions ( FTS) entered into an unlawful agreement in December 2016 as approvals were not obtained from the exchange control authorities and the procurement regulatory authorities.

FTS then declared a dispute and instituted arbitration proceedings in the London Court of International Arbitration as provided for in the lawful agreement.

Resultantly NetOne was ordered to pay FTS US$5 million in damages without goods or services being rendered to it.

The matter was reported to the Zimbabwe Anti-Corruption Commission (ZACC) but no one was ever arrested.

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21 Comments

mafirakureva 3 weeks ago

torai Mari United ....vanotoziva kuti Mari inobuda chete .....zvikaramba breach of contract inovapa Mari vasina kushanda ....chinhu chavo ...looting chete


Chawabvunza 3 weeks ago

I am happy that this deal has not been cancelled, but suspended while a committee examines it further. Harare City Council Mayor, Jacob Mafume, is an Advocate. Some deals are unachievable, ab initio, and one partner will end up being sued by the other for breach of contract. Is this deal not one of those deals ??? The committee will look into all these angles. Advice from Cde Reward Kangai must be looked at seriously.

NYIKA INOURAIWA NE MBAVHA DZAYO.

NGAAPINDE HAKE CHAMISA [NHC].

[ VOTE CCC FOR REAL CHANGE ].


Tozivepiko 3 weeks ago

Juju Moyo you have corrupted most of the local government councils in Zimbabwe. One day you will be called to answer for your actions. Mind you those (criminal cartels) who protect you will also be brought before real courts manned by not compromised judiciary.


VYBZ KARTEL 3 weeks ago

unotorwara zvako iwe muka ubike doro

dispenser 3 weeks ago

hapana hapana maways okuspender mari ye hurumende


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Weedman 3 weeks ago

So called "mega deals"


chahototo 3 weeks ago

mukufurirana madeals akadai haachinjwe zvekudaro. No reverse dhiri


Tateguru 3 weeks ago

That's a listening Council


kezi 3 weeks ago

zimbabwe is like a headless chicken kkkkk


headless chicken 3 weeks ago

ahh boe here apo

Mafirakureva 3 weeks ago

@kezi, more like a rotten fish

Mutoriro Movement 3 weeks ago

Mmmm Zimbabwe let's vote for a change of government. This one of crocodiles, war guerrillas, cartels, hooligans and racketers hatina kwatinosvika nayo. Tingafare hedu but our children's future raparadzwa nemagandanga aya.


SC 3 weeks ago

Instead of us demanding money that we all know will be embezzled by our own, let us give projects for services for example we give them the pomona deal for Morton Jaffray ressucitation or pump zesa with electricity. As long as paper is involved mm i know my countrymen. Harare has schools that need to be looked over, Hospitals need equipment, the ambulance service, fire dept all these for the deal everyone wins


BRIGADIER 3 weeks ago

Thank you guys. Blue 🔵 alias Blue💙 kurisei.


👏 3 weeks ago

Ipi

Chigunduru 3 weeks ago

IPI

gandangaguru 3 weeks ago

July moyo ranga rafunga kurova Mari kkkk ko muzanu makwikwi ekubira nyika

Machiavelli 3 weeks ago

A first to hear sense from this unexpected quarter 😳😳😳

Blue 💙 3 weeks ago

Yes, l do. But that doesn't mean l stand for everything they do or say. When something is bad, I'll call it out.

baba keketso 3 weeks ago

aaaah apa unsupportedr zanu

Blue 💙 3 weeks ago

The deal was daylight robbery. I'm happy it got suspended. Mozoti mu Zim hamuna democracy.


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