"In fact this story is the joke of the year for 2009," Dabengwa said. "We have never decided that government takes over this project."
The Minister of Water Development, Samuel Sipepa Nkomo, last week claimed that the government was now in charge of the project which has been docile for a long time.
Dabengwa says he was not told that government was now in charge and only heard about it in the newspapers.
Nkomo had meanwhile said he had met with Dabengwa and Vice President in waiting, John Nkomo, all from the Matatabeleland region to discuss the progress about the project meant to help solve Bulawayo’s water woes.
Dabengwa however disputed this saying the meeting was never held and he had not met with Nkomo whom he called "a liar".
"This project is still in our hands," Dabengwa said.
"We have not agreed that government take it over."
There has been much haggling about the project with the Malaysian Government claiming that it had been given it for US$5 million last year by Vice President Joice Mujuru.
Dabengwa said all this was "hogwash".
He said his members would meet to pave the way forward.
Other members of the project include Bulawayo-based economic commentator, Eric Bloch.