The City of Harare may have been prejudiced by US$816,000 due to a water treatment chemicals supplier, Nanotech Water Solutions, which only acquitted US$252,000 from the US$1.1 million allocated from Devolution Funds for the city’s water purification improvements, reported The Herald.
The matter has been referred to the Zimbabwe Anti-Corruption Commission (ZACC) amid concerns of potential misappropriation of public funds.
Since October 2023, the Ministry of Local Government and Public Works has been requesting acquittals for funds disbursed by the Reserve Bank of Zimbabwe (RBZ).
These funds were intended to cover the mobilization, installation of equipment, and supply of precursor chemicals for the project’s first phase.
In a letter dated October 2, 2023, to Harare town clerk Hosiah Chisango, the Ministry stated that acquittals were expected within four days of receipt.
The letter states that the City of Harare initiated a project in early 2023 to generate chlorine dioxide on-site for effective disinfection at the Morton Jaffray Water Treatment Plant. It reads in part:
To that effect, the Reserve Bank of Zimbabwe disbursed US$1 100 000 in December 2022 to cover mobilisation, installation of equipment, supply, delivery and dosing of precursor chemicals for the 1st Phase of the project.
This project is earmarked for funding under the Devolution portfolio and in this regard, the Ministry is requesting acquittals on how these funds were utilised. The submission of these documents should be no later than Friday 6 October 2023.
However, of the US$1.1 million, only US$252,313.16 was acquitted, leaving an outstanding balance of US$815,686.84.
Minutes from the Environmental Management Committee, dated July 15, 2024, reveal that the council moved to terminate Nanotech’s contract.
An Audit Committee meeting on August 15, 2024, recommended referring the matter to ZACC due to noted irregularities.
The committee noted that Nanotech failed to provide receipts for the full amount, did not deliver the necessary equipment and chemicals to Morton Jaffray within the stipulated three months, and violated exchange control regulations.
The Audit Committee also noted that Nanotech’s failure to acquit the advanced funds constituted a breach of the Public Procurement and Disposal of Public Assets Act and the Urban Councils Act, raising concerns of potential corruption and contract violations.
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