July Moyo reportedly wrote to the City Fathers ordering them to pay a state-linked company Chemplex a whopping $78 Million to settle the City’s debt for water treatment chemicals, The Standard reports.
Ironically the city is failing to buy water treatment chemicals because Moyo is yet to approve the city’s budget forcing the city to use last year’s rates despite skyrocketing inflation.
The letter by the Minister to City Of Harare reads:
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I am gravely concerned that despite requesting you to improve the management of the water account so that Harare would not fall behind with the payment for water treatment chemicals, your council has accumulated a debt of $78 million with Chemplex Corporation, which is your prime chemical supplier.
…In line of this, I hereby order you in terms of the Urban Councils Act, to immediately negotiate a payment plan with Chemplex that will cover the clearing of arrears and allow for the continued supply of the current chemical needs.
You are to submit details of the payment plan to me before the end of this week and, thereafter, I will require a weekly update on the progress made to adhere to the payment plan
According to the City’s Michael Chideme, the city is struggling with cashflows and they agreed on a payment plan with Chemplex.
More: The Standard