Zimbabwe: Geo Pomona Waste Management Scandal Expands Nationally

• The Geo Pomona Waste Management deal, initially imposed on Harare, is expanding across Zimbabwe through "National Project Status" granted in April 2022.
• The city of Harare reportedly pays US$2.7 million monthly for Geo Pomona's services, a cost deemed disproportionate to the benefits received.
• Geo Pomona's CEO, Delish Nguwaya, also serves as Special Advisor to the President on Waste Management and Environmental Sustainability, despite his past involvement in a US$60 million COVID-19 procurement scandal with Drax International.
• The arrangement is criticized for its political patronage, unsustainable costs, and the risk of future cancellation by a new government, leading to significant financial losses for local authorities.
• Critics argue that funds could be better used to directly capacitate local authorities for their own waste management operations rather than funding expensive external contracts.

The appointment of an individual linked to such a significant past controversy to a high-level advisory role, alongside his leadership of a multi-million-dollar public contract, is seen by many as signaling a troubling message of impunity.

The Geo Pomona Waste Management agreement has emerged as a deeply contentious issue in Zimbabwe, drawing criticism for its perceived reliance on political patronage rather than sound investment principles. This arrangement, initially imposed upon the city of Harare, has since been extended across the nation, with local authorities increasingly compelled to adopt similar contracts. A significant development occurred in April 2022 when President Emmerson Mnangagwa’s government granted the project "National Project Status," a designation that has facilitated its systematic expansion.

This expansion is currently manifesting as an assertive drive to implement the Geo Pomona scheme in Bulawayo, a move that critics argue disregards the city's local autonomy and specific community requirements. At the heart of the company's operations is CEO Delish Nguwaya, who also holds the influential position of Special Advisor to the President on Waste Management and Environmental Sustainability. This dual role raises concerns, particularly given Nguwaya's prior involvement in a prominent US$60 million COVID-19 medical supply and drug procurement scandal, which saw a contract awarded to Drax International by the Zimbabwean government. The appointment of an individual linked to such a significant past controversy to a high-level advisory role, alongside his leadership of a multi-million-dollar public contract, is seen by many as signaling a troubling message of impunity.

The financial burden imposed by the Geo Pomona contract on municipalities is a central point of contention. The city of Harare, for instance, is reportedly incurring an estimated cost of US$2.7 million each month for the services provided. Critics contend that this substantial expenditure is disproportionate to the actual benefits received, which primarily involve waste collection and the rehabilitation of a single dumpsite. Such a high monthly outlay for these basic services is widely viewed as defying economic logic and moral sensibility.

There are significant concerns that these exorbitant costs will be replicated across other urban centers throughout Zimbabwe, exacerbating an already dire situation for local service delivery. Many municipalities are already struggling with chronic underfunding, leading to a disastrous state of public services. The town of Redcliff serves as a stark example; it grapples with inconsistent water supply, haphazard refuse collection, and severely dilapidated roads, yet is reportedly considering a partnership with Geo Pomona. For financially distressed local authorities, the prospect of committing millions of dollars to such a contract is unsustainable. This arrangement is predicted to result either in significantly higher utility bills for already impoverished residents or a diversion of crucial devolution funds, thereby compromising essential community services. A more logical and practical approach, some argue, would be to directly empower local authorities by investing in their own waste management capabilities and equipment, fostering sustainable local capacity.

The underlying structure of the Geo Pomona Waste Management scandal Zimbabwe contracts, characterized by their "National Project Status" and the involvement of politically connected individuals, presents inherent risks and long-term instability. Such arrangements, often perceived as products of political patronage, are fundamentally unsustainable because their longevity is tied to the tenure of their political benefactors. Once a protecting leader leaves office, there is a high probability that these opaque tenders could be subject to cancellation by a new administration.

This potential future scenario carries severe financial implications for local authorities. By the time such cancellations occur, municipalities could have already expended millions, or even billions, of dollars on what amounts to basic waste management services, without achieving lasting infrastructure or capacity improvements. This squandering of public funds would inevitably lead to a severe and potentially irreparable compromise of genuine local service delivery. The current approach, therefore, is not only seen as financially irresponsible but also as dangerously shortsighted and destructive, prioritizing short-term political gains over the long-term well-being and fiscal health of Zimbabwean communities.

Lawyers and compliance officers advising local authorities or businesses in Zimbabwe should exercise extreme due diligence when evaluating public-private partnership contracts, especially those granted 'National Project Status', due to the high risk of political patronage, unsustainable costs, and potential future cancellation if the political landscape shifts, as exemplified by the Geo Pomona case.

Source: Original reporting via Tendai Ruben Mbofana