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Isles to sue Kenyan firm over fertiliser pact
2007-10-20 09:35:22
By Mwinyi Sadallah, Zanzibar
Zanzibar has said it plans to sue a Kenyan investor over an alleged breach of a contract to produce natural fertiliser using solid waste.
This is according to Zanzibar`s Minister of State for Regional Administration, Suleiman Othman Nyanga, when responding to a question in the Isles House of Representatives here yesterday.
The question was from Mfenesini representative Ali Abdallah Ali of the ruling CCM.
The minister named the company as ZAREC LTD, which he said had entered into a contract with the Isles government to make natural fertiliser using solid waste collected in the Zanzibar municipality.
`This company has failed to produce the fertiliser as provided for under the agreement they have signed with us,` he said.
He elaborated that the firm had failed to observe and implement the conditions of the agreement and now owes the government 436.2m/- which the Zanzibar Municipal Council was entitled to be paid.
Nyanga said ZAREC made the contract fall through effective from October 9 last year and the government was proceeding with procedures to take legal action against it.
The contract stipulates that the company would produce natural fertiliser at Jumbi in Zanzibar`s West Urban Region promoting the environment.
`The government will seek legal redress because there is every indication that the company just cannot perform any of the duties specified under the contract,` the minister told the House.
Representative Ali had earlier asked the government to review the contract forthwith and explore more feasible ways of fighting environmental degradation at Jumbi.
He submitted that the Kenyan firm`s failure to deliver on the contract had put the area at serious environmental risk because it was fast turning into a waste disposal site.
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