NANOTECH Solutions, a company that was engaged by Harare City Council (HCC) to install alternative, cost-efficient water treatment equipment at the Morton Jaffray Water Treatment Plant, has accused councillors and senior management of frustrating the US$5,4 million project.
The company also revealed that it was ready to furnish the Zimbabwe Anti-Corruption Commission (Zacc) with documents that show a list of names of the councillors and council managers who demanded kickbacks.
The project, which was touted as a game changer to the city’s perennial water challenges, has stalled with equipment lying idle at Morton Jaffray three years after it was purchased.
Speaking to NewsDay, Nanotech manager Joe Rugwete said the impasse between his company and HCC was being dealt with in several ways.
“The matter is currently being addressed through various forums, including the commission of inquiryon the City of Harare and the Local Government, ministry” he said.
“We welcome the involvement of Zacc, whom we will gladly share all information we have on the rent-seeking behaviour of some councillors and city officials.”
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Harare mayor Jacob Mafume said the company had not approached his office with documentation implicating officials demanding bribes for the project.
“They are still to present any documentation to my office. I am keen to see it. We are ready to pay them once the issue of acquittals has been finalised,” he said.
According to an audit report in possession of NewsDay, Nanotech Water Solutions was awarded a contract by HCC to supply, install, commission, operate and maintain chlorine dioxide water treatment technology.
The contract, valued at US$5,37 million, was formalised in a memorandum of agreement signed on May 12, 2020 after successful plant trials in February 2019.
However, despite the initial promise, the project has faced delays due to financial disagreements and procedural missteps.
The contract stipulated payments to be made in arrears in three equal monthly instalments of US$1,79 million.
But a variation order was later agreed on, changing the payment structure to two equal instalments of US$2,685 million.
The audit report also revealed that an impasse arose over the acquittal of US$1 068 013,51 advanced to Nanotech Water Solutions.
Despite numerous communications, the city’s finance department has not processed further payments, citing the need for proper acquittals.
Nanotech, in their defence, has pointed out that the project falls under engineering, procurement, construction and financing contracts, which involve complex works that do not always require traditional bills of entry for acquittal.
Instead, they argue that acquittals are only needed at the end of the project, as per industry standards.
The acting director of Harare Water confirmed that Nanotech has performed as per the agreed position, having installed equipment and conducted a successful trial run.
The audit recommended that the city’s finance director should be involved in negotiation of contracts so that there is an understanding of the type of contract entered into.
“Council should consider honouring their part of the bargain by going to the Reserve Bank with Nanotech to register a service contract as a way to resolve the issue of acquittals and that City of Harare should seriously consider the issue of wear and tear of machinery/equipment installed by Nanotech at Morton Jaffray Water Works,” the audit stated.