By Emelda Siama John Lopula
Juba mayor has terminated a deal with East African Go-Green Company Limited, which was contracted to collect rubbish from the capital city.
The cancellation of the deal followed an abrupt halt by the East Africa Go-Green Company Ltd from cleaning solid waste in Juba City over 90 days ago.
Juba City Council entered into an agreement with East African Go-Green Company Limited, on September 10, 2020.
The deal was to be practical on January 1, 2021, for execution of an “Integrated Municipal Solid Waste Management plan” in Juba City for a period of 10 years.
Juba city Mayor, Michael Lado Allah-Jabu said a letter, titled “Relocking up of the Company by the Court the second time” by East Africa Go-Green Company Limited, addressed to Juba City Council confirms the stoppage.
“Since Juba City Council has now handled all responsibilities of Splice Waste Management of the City due to the absence of the company in regard to garbage management, the concessionaire has breached Article 7.1 of the concession that deals with the project cost,” he added.
East Africa Go-Green Company Limited also stopped all garbage cleaning exercise in Juba City following attachment of its assets.
Mayor, Allah-Jabu told the media on Wednesday that the City Council, in the absence of the company, has overtaken the cleaning activity with its meager resources.
He noted that as a result of the unprecedented situation, the city administration has been exposed to a heavy financial burden.
The sudden stoppage of the company’s activity resulted to decline in cleanliness and environmental atmosphere in the capital city, making it to be most precarious.
However, the mayor observed that like any other city administration in the world, Juba City Council has the responsibility of keeping the environment clean and healthy.
Juba city is the political and economic center of the nation, as well as the host of its leaders, diplomats of the international community, and other country delegations.
The mayor stated that it is a known fact that the image of the capital city of the nation represents the nation.
Mr. Allah-Jabu said since the City Council cannot wait in such a desperate and undefined future, it has been forced to take administrative measures.
“The Administration of Juba City Council (JCC) has decided to terminate all contractual obligations with East Africa Go-Green Company Limited in the months of June 7, 2023” Mayor’s letter reads in part.
According to Mayor, the cancelation came due to concession “Event of Default” where the Concessionaire failed or defaulted its YES, Possibility, and is, therefore, liable for contract termination.
However, court had ruled East Go-Green to cease its operation after a lender, the company borrowed money from to buy cleaning equipment, filed a legal suit for failing to repay the loan.
But the revelation dismayed Juba City Council authority which had believed that Go-Green was established by stakeholders’ personal investment and not with a loan from a third party.
“Since a private operator is a profit-making company and cleaning cities is a public service, the public cannot be squeezed to pay a service beyond its capacity in order to repay your loan,” the mayor said.
The interest, Go-Green Company agreed with the lender on the loan was exorbitant.
Go-Green had concealed its financial capacity; a reality that revealed itself with diverse consequences, exposing the company’s incapacity to meet the loan obligations, as such, faced a problem with the lender.
“By not disclosing the financial resources to the City Council, the concessionaire has behaved in the most unethical manner, and hence it has deceived the Juba City Council,” he continued.
The loan lender was then compelled seek for legal redress in Courts of law to recover its unpaid money from the garbage company.
Consequently, the court ruled in favour of the lender and attached all the movable and non-movable Assets of Go-Green but over 90 days, leaving the company in more troubles with the gate remaining padlocked.