The Juba City Council (JCC) has ended its contract with East Africa Go Green Company Limited, the company that was contracted to handle solid waste management in Juba.
In January 2021, East Africa Go-Green Company Limited signed a deal with JCC for the execution of integrated municipal solid waste management in Juba City for 10 Years.
According to JCC, the company failed to deliver on the contract after it was dragged to court by a lender for defaulting on a loan and had its garbage collection vehicles grounded.
In an order issued last week, JCC Mayor Michael Ladu Allah-Jabu said the company failed to deliver as agreed, depriving city residents of their rights to a clean environment.
“Over 90 days ago, East Africa Go-Green Company Limited stopped cleaning solid waste in Juba City and as a result of this failure, the clearness and environment of the Capital City of the Country has been found in the most precarious situation,” Allah-Jabu wrote. “Since the City Council cannot wait in such a desperate and undefined future, it has been forced to take administrative measures. As such, this is to notify you and all stakeholders that the administration of JCC has decided to terminate all contractual obligations it has with East Africa Go-Green Company Limited as of June 7, 2023”
JCC further outlined four reasons justifying its decision to end the contract which include the company defaulting on its responsibility and the city authorities lacking knowledge that the contractor was indebted.
“Juba City Council previously knew that the Company was established by stakeholders’ 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 for the service beyond their capacity to repay your loan with the exorbitant interest you agreed with the lender,” the mayor wrote. “By not disclosing the financial resources to the city council, the concessionaire has behaved in the most business unethical manner and hence it has deceived the JCC. Even though the Concessionaire has concealed its financial capacity, the reality revealed itself that it could not meet its loan serving and as such faced a problem with the lender.”
Mayor Alah-Jabu said that as a result of a court decision, the company completely stopped garbage collection in the city and the JCC had to step in.
“Since JCC has now handled all responsibilities of solid waste management in the city due to the absence of the company in regards to garbage management, the concessionaire breached article 7.1 of the concession that deals with the project costs,” he wrote.
Efforts to reach East Africa Go-Green Company Limited were fruitless as phone calls did not go through.