News / National
Zesa sues parastatals, councils over $1bn debt
12 Sep 2016 at 11:19hrs | Views
The Zimbabwe Electricity Transmission and Distribution Company, which is battling to recover over $1 billion in unpaid power bills, has approached the High Court suing at least 200 local authorities, state enterprises and private companies.
Some prominent individuals are also appearing in the court cases filed by ZETDC.
Among the list of debtors are at least 40 state and local authorities who are being sued for a combined $25 million.
Summons were issued from January this year to date and the cases are proceeding through the High Court in Harare.
Although some defaulters were yet to be sued and others on payment plans, the 200 have proved to be bad debtors.
Zesa public relations manager Mr Fullard Gwasira confirmed the implementation of debt recovery strategy, saying many others were still to be taken to court.
Mr Gwasira said stern credit control measures like lawsuits were Zesa's last resort in cases where the creditors are not co-operating in terms of payment plans.
"Litigation for us is the last option. We believe in dialogue and those who come forward and negotiate payment plans are not sued.
"There are many cases that are settled outside court because we do not enjoy suing our clients. If the debtors cooperate, we will simply agree on favourable terms," he said.
Mr Gwasira said the credit control measures are being applied in the spirit of ensuring the success of Government's economic blueprint, Zim-Asset.
The power utility, after unsuccessfully trying other remedies, approached the High Court seeking an order compelling the defaulters to pay up.
The sued defaulters owe the power utility amounts ranging from $13 000 to $6,9 million each.
ZETDC engaged the services of three different law firms, Chinganga and Company, Baera and Company as well as Chihambakwe, Mtizwa and Partners to sue the debtors.
Sable Chemicals Industries is locked up in a legal wrangle with ZETDC in which it is challenging the $6,9 million electricity bill.
Chinhoyi Municipality is defending a claim of about $5,9 million which is being claimed together with interest.
Zvishavane Town Council is also on the list with a bill of about $4,6 million.
Chegutu Municipality was slapped with a bill of about $2,1 million and the case is still pending at the High Court.
ZETDC is claiming about $1 million from Shurugwi Town Council while the Municipality of Marondera is also in trouble over a bill amounting to about $2 million.
NetOne Cellular owes about $1,2 million while Air Zimbabwe has been sued for about $900 000.
Mutare City Council and Chitungwiza Municipality are being sued about $1,1million and $700 000 respectively by the power company.
The Forestry Commission is being sued for about $160 000 while Zvimba Rural District Council is being sued for $340 000.
Non-governmental organisations were not left out as Jairos Jiri Association owes $220 000.
Prominent individuals like politician Mr David Butau and Dr Gideon Gono of Lunar Chickens are being sued for about $18 000 and $87 000 respectively.
Most of the debtors are contesting the billing systems, saying the figures claimed by the power utility were unreasonable and strange to them.
Zesa borrowed $500 million for the expansion of the Kariba power station while creditors owed it in excess of $1 billion.
Some prominent individuals are also appearing in the court cases filed by ZETDC.
Among the list of debtors are at least 40 state and local authorities who are being sued for a combined $25 million.
Summons were issued from January this year to date and the cases are proceeding through the High Court in Harare.
Although some defaulters were yet to be sued and others on payment plans, the 200 have proved to be bad debtors.
Zesa public relations manager Mr Fullard Gwasira confirmed the implementation of debt recovery strategy, saying many others were still to be taken to court.
Mr Gwasira said stern credit control measures like lawsuits were Zesa's last resort in cases where the creditors are not co-operating in terms of payment plans.
"Litigation for us is the last option. We believe in dialogue and those who come forward and negotiate payment plans are not sued.
"There are many cases that are settled outside court because we do not enjoy suing our clients. If the debtors cooperate, we will simply agree on favourable terms," he said.
Mr Gwasira said the credit control measures are being applied in the spirit of ensuring the success of Government's economic blueprint, Zim-Asset.
The power utility, after unsuccessfully trying other remedies, approached the High Court seeking an order compelling the defaulters to pay up.
The sued defaulters owe the power utility amounts ranging from $13 000 to $6,9 million each.
ZETDC engaged the services of three different law firms, Chinganga and Company, Baera and Company as well as Chihambakwe, Mtizwa and Partners to sue the debtors.
Sable Chemicals Industries is locked up in a legal wrangle with ZETDC in which it is challenging the $6,9 million electricity bill.
Chinhoyi Municipality is defending a claim of about $5,9 million which is being claimed together with interest.
Zvishavane Town Council is also on the list with a bill of about $4,6 million.
Chegutu Municipality was slapped with a bill of about $2,1 million and the case is still pending at the High Court.
ZETDC is claiming about $1 million from Shurugwi Town Council while the Municipality of Marondera is also in trouble over a bill amounting to about $2 million.
NetOne Cellular owes about $1,2 million while Air Zimbabwe has been sued for about $900 000.
Mutare City Council and Chitungwiza Municipality are being sued about $1,1million and $700 000 respectively by the power company.
The Forestry Commission is being sued for about $160 000 while Zvimba Rural District Council is being sued for $340 000.
Non-governmental organisations were not left out as Jairos Jiri Association owes $220 000.
Prominent individuals like politician Mr David Butau and Dr Gideon Gono of Lunar Chickens are being sued for about $18 000 and $87 000 respectively.
Most of the debtors are contesting the billing systems, saying the figures claimed by the power utility were unreasonable and strange to them.
Zesa borrowed $500 million for the expansion of the Kariba power station while creditors owed it in excess of $1 billion.
Source - chronicle
