Bulawayo City Council (BCC) has withdrawn its $20 000 lawsuit against the Matabeleland Zambezi Water Trust (MZWT) after the parties agreed on a six-month moratorium.
BY NQOBANI NDLOVU
The local authority had taken the trust to court over unpaid rentals, which had ballooned to $20 118,70.
Council leased out the former art gallery offices along Robert Mugabe Way to the trust on $300 monthly rentals in 2004, but the trust has not been paying the rent due to a cash squeeze.
BCC sued the trust on grounds the organisation was no longer relevant after the government appointed the Zambezi Water Project Advisory Council to take charge of the long-awaited Matabeleland Zambezi Water Project, touted as the panacea to Matabeleland’s perennial water woes.
According to the latest council minutes, the local authority has, however, suspended the legal action following pleas from the trust, and also because the advisory council is not yet functional since the change of ministers in 2013.
“However, it should be noted that the advisory council has not been functional after the change of ministers. In light of the above, maybe council can hold the legal action and re-engage on the relationship with the trust.
“After discussion, that the request by MZWT for a moratorium be granted and litigation for the recovery of the debt (currently $20 118,70 inclusive of legal costs) be suspended pending review after six months from date of council resolution,” latest minutes of the council finance and development committee read.
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The trust appealed to the local authority to withdraw the legal action, saying it had sought investors to assist in the implementation of the water project and would, therefore, clear its rental debts.
Part of the appeal read: “For council to now, when we are on the verge of such a breakthrough, want to resort to legal action will only turn out to be counter-productive. If anything, we rather wish to plead with the council to appreciate and understand our situation and allow us the opportunity to proceed with this critical project for not only the City of Bulawayo, but the whole surrounding region for socio-economic upliftment and general prosperity for all.
“As soon as the public-private partnership arrangement materialises, we will resume our rental payments and clear all arrears promptly. In the meantime, we request that you please suspend legal action against the MZWT.”
