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Harare council, Zesa in a tit for tat over unpaid bills

by Municipal Reporter
30 Apr 2013 at 04:31hrs | Views
Harare City Council has hit back at Zesa Holdings for switching off power to its offices over unpaid bills by ordering an audit of properties that were transferred to the power utility in 1986 to ascertain if rates and other municipal bills have been paid over the years.

Mayor Muchadeyi Masunda confirmed the audit yesterday which was ordered after Zesa took the drastic action over US$53 million that it is owed in electricity bills.

Harare used to run the Harare Thermal Power Station before 1986, but the Government decided that the power sector was strategic and could not be managed by third parties.

The responsibility to run the power station was then transferred to Zesa, resulting in the city collapsing its electrical department.

Harare also transferred other buildings associated with the generation of electricity and some sub-stations to Zesa.

"No compensation was ever paid," said Mr Masunda.

"Zesa uses our transmission lines and they have not been paying rentals for the lines."

Mr Masunda said he instructed town clerk Dr Tendai Mahachi to establish the financial prejudice suffered by the city after the transfers.

He said it was unfortunate that Zesa Holdings resorted to switching off power to council offices when the city itself did not switch off water supplies to the power utility over unpaid bills.

Harare City's offices at Town House, Cleveland and Remembrance were without electricity for the last five days, but the power had been restored by yesterday.

"We do not want a tit for tat," said Mr Masunda. "They also do not have the money to pay us."

Of interest is that none of the properties have been legally transferred to Zesa Holdings as the title deeds of the properties are still in the name of Harare City Council.

Source - theherald
More on: #Zesa, #Harare