HomeLocal NewsZesa pulls plug on Sable Chemicals

Zesa pulls plug on Sable Chemicals

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The world’s largest electrolysis plant and Zimbabwe’s sole ammonium producing company Sable Chemicals was temporally thrown offline after Zesa pulled the plug for non-payment of a $22 million debt accumulated over the past year.

Impeccable sources within Zesa’s southern region said the power utility had handed over the ammonium producer’s case to its lawyers Dzimba, Jaravaza and Partners after being forced by the government to restore electricity.

The sources said Sable Chemicals only paid $1 million on September 10 after power had been restored and that is why the power utility has resolved to hand the case over to its lawyers.

Early this year, the ammonium producer headed by Jack Murehwa, a director with TA Holdings, temporarily shut down citing high power tariffs.

They argued that the Zesa bill was astronomical and would lead to the collapse of Sable Chemicals.

Through the intervention of Finance minister Tendai Biti and former Energy minister Elias Mudzuri, tariffs were reduced before the plant went back on line.

Although no official comment was immediately available, it is understood that the company is owed over $14 million by the government and that was part of the reason they had failed to settle their bills with Zesa.

The company, which is facing serious viability and cash-flow problems has also struggled to pay its skilled workforce resulting in a massive worker exodus .

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