▪︎ Missing Funds and Unknown Directors Raise Concerns
HARARE – The Harare City Council has appointed a special committee to investigate the performance of a contract awarded to Nanotech Water Solutions (Pvt) Ltd, which involved an advance payment of US$1.1 million yet two years later, minimal progress has been made, with close to US$1 million unaccounted for.
Nanotech Water Solutions (Pvt) Ltd was tasked with supplying, installing, and commissioning chlorine dioxide water treatment technology at Morton Jaffray Water Treatment Works.
Curiously, Harare City Council appears not to know the company directors of Nanotech Water Solutions (Pvt) Ltd and has now launched an investigation to uncover how the funds were used, the acquittal process, and the identification of the company’s directors.
In September 2022, the Council announced it was on the cusp of saving up to US$300,000 per month by using an alternative water treatment chemical produced at Morton Jaffray Water Treatment Works.
The project, funded through Devolution Funds, included the supply, installation, and commissioning of chlorine dioxide water treatment technology by Nanotech Water Solutions.
Then Acting Finance Director Godfrey Kusangaya, during a Special Council meeting, highlighted the financial benefits of the Nanotech deal, emphasizing potential monthly savings of over US$300,000.
“Once we start producing chemicals locally, we will also mitigate current chemical shortages,” he stated.
Nanotech’s Operations Manager, Gideon Reyneke, expressed the company’s readiness to commence work upon receiving the initial payment.
“We are not here to be suppliers but to partner with you in the long term. As soon as we have feedback and know the money is in our bank, we can action that. We have prepared everything,” Reyneke said back in September 2022.
“We will upgrade the plant with disinfection and manufacturing solutions; long term, we will start addressing capacity at Morton Jaffray to increase it and look at reticulation to ensure that we are able to address the questions we have,” he added.
Despite the initial optimism, councillors are now raising concerns over the lack of progress. According to minutes from the Environmental Management Committee meeting held on May 2, 2024, only US$189,000 of the US$1.1 million advance has been acquitted.
The Acting Finance Director reported that Nanotech had not provided the full acquittal required by the Reserve Bank of Zimbabwe.
Further, “the Chairperson reported that she had visited Morton Jaffray Water Treatment Works and had observed the works that had been set up by Nanotech water solutions (Pvt) Ltd but wondered why there was no production,” read council minutes seen by Kukurigo.
Councillors are now calling for a thorough investigation by the Audit Committee into the usage of the funds, the incomplete acquittals, and the background of the company’s directors.
They also stressed the need to understand how the contract was awarded and whether legal procedures were followed. The Environmental Management Committee minutes from May 9, 2024, reveal ongoing concerns about the delays in reporting and the need for critical decisions regarding Harare’s water supply solutions.
The Committee noted the importance of not engaging other companies while the contract with Nanotech remains active unless it is terminated.
Meanwhile, the Council has requested a comprehensive report from the Director of Works on Tamira Investments, another company engaged by the Council and paid in advance for constructing a modern laboratory, which has also faced scrutiny.
The scandal unfolds as Harare’s water situation remains critical, affecting people’s rights to water, sanitation, and health.
