In a statement, the municipal executive led by Satar Abdulgani said the creation of the municipal company and the acquisition of equipment were intended to provide the municipality with its own resources to respond more quickly to the deterioration of urban roads.
The planned equipment includes trucks and road-paving machinery.
The municipality argues that direct procurement was used under an emergency provision allowed by law, citing the need for urgent intervention ahead of the rainy season and to prevent further risks to road traffic and safety.
The Municipal Council also responded to questions regarding the registration of the mayor as the beneficial owner of the public company.
According to the municipality, the registration resulted from a legal requirement and does not mean that the mayor owns the company or is entitled to any personal financial benefit.
The municipality also said it remains fully available to cooperate with judicial and oversight authorities in clarifying the case.
Despite the explanations provided, the contracts remain under review by prosecutors, keeping questions over transparency and the management of public funds in Pemba Municipality under public scrutiny.