Zimbabwe State-Owned Power Utility Staggering Under US$900 Million Debt
ZESA Public Relations Manager Fullard Gwasira said ZESA’s financial position
would improve if local consumers would cough up US$450 million in
outstanding bills – but consumers accuse ZESA of overcharging
Gibbs Dube | Washington 04 March 2011
Zimbabwe Electricity Supply Authority Holdings Limited is technically
insolvent given its debts amounting to some US$900 million, ZESA Chief
Executive Josh Chifamba has told Parliament this week, complaining that
consumers owe ZESA US$450 million.
Consumers have acccused the state-controlled utility of grossly overcharging
them while failing to provide sufficient electricity to avoid chronic and
long blackouts.
Chifamba told Parliament’s Committee on State Enterprises that ZESA faces
serious operational problems for lack of money and qualified staff.
Debts include US$140 million owed to Southern African regional power
utilities, he said, adding that ZESA requires some US$540 million to upgrade
its infrastructure. But he noted that it was allocated just US$55 million in
the 2011 national budget.
ZESA Public Relations Manager Fullard Gwasira said ZESA’s financial position
would improve if local consumers would cough up US$450 million in
outstanding bills.
“Consumers should pay for what they use in order for us to settle our debts
and thereafter look for funding for capital projects,” said Gwasira.
Economic commentator Rejoice Ngwenya said ZESA should consider selling a
majority stake to raise capital to upgrade and pay down its massive debts.
“Almost all [Zimbabwe’s] parastatals are bankrupt and as such I think
government should sell its majority shares in this company in order to
generate money for capital projects and paying its huge debt,” Ngwenya told
VOA Studio 7 reporter Gibbs Dube.