Zimra denies withholding water project equipment

via Zimra denies withholding water project equipment | The Herald 16 July 2014

The whereabouts of equipment for the refurbishment of Morton Jaffray Water Works reportedly withheld by the Zimbabwe Revenue Authority over tax arrears is now not clear after Zimra yesterday denied the claims.The equipment is being imported under a controversial US$144,4 million loan obtained from China’s EximBank.

China Machinery Engineering Corporation, which was contracted by the City of Harare to do the refurbishment work, told parliamentarians on Tuesday that the work was being stalled after Zimra withheld four containers containing equipment at Forbes Border Post in a bid to force the council to clear US$42 million it owes in arrears.

The company’s representative Mr Zhang Xin said they were considering stopping further shipment if Zimra continued intercepting the equipment. The equipment was exempted from paying tax after the project was granted National Project Status.

Zimra Commissioner-General Gershem Pasi denied in a statement yesterday that they withheld the equipment.

“The Zimbabwe Revenue Authority wishes to set the record straight in connection with misleading and incorrect reports in the print and electronic media purporting that rehabilitation work at Morton Jaffray Water Works has been stalled by Zimra,” he said.

“The correct position is that no such equipment is being held by Zimra either at Forbes Border Post or at any other Zimra station. No clearance documentation has been submitted to Zimra by the importer or the importer’s clearing agent.”

As such, Comm-Gen Pasi, said Zimra could not be held accountable for the delays in the refurbishment work at Morton Jaffray Water Works.

“Zimra cannot be said to be stalling the water project when the importation of the said equipment has not yet been brought to its attention for processing in accordance with the laws of the country,” he said.

But City of Harare spokesperson Mr Leslie Gwindi claimed that discussions were held with Zimra to issue a tax certificate for the equipment.

“We have had discussions with Zimra and they are issuing a tax certificate,” he said.

Harare’s water and sewerage treatment plants have outlived their lifespan.

Supplies are expected to improve by up to 80 percent when rehabilitation of the plants is completed by the end of next year. Last month, Zimra garnished US$3 million from the City of Harare’s accounts over a US$42 million debt.

The implementation of the refurbishment project has been bedevilled by a number of challenges that include overpricing of equipment, while council officials spent up to US$2 million of the loan funds to buy luxury vehicles.