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NewsDay

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‘Zesa only using 27% on salaries’

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Zesa Holdings says only 27% of its revenue goes towards salaries in line with business best practices.

Zesa Holdings says only 27% of its revenue goes towards salaries in line with business best practices.

by STAFF REPORTER

Zesa’s public relations manager, Fullard Gwasira said funds allocated to the group from Treasury were channelled towards funding operations or to procure spares and inputs for electricity generation, transmission and distribution to achieve security of electricity supply, among other critical areas of need.

He was responding to an article published in NewsDay last week, which said 76% of revenue generated by the power utility went towards salaries, which quoted Energy ministry permanent secretary, Patson Mbiriri, who had appeared before a Parliamentary Portfolio Committee.

“While employees are important stakeholders of the power utility, only 27% of the revenue generated by Zesa is channelled towards salaries in line with business best practices. It is not correct that Zesa Holdings has used 76% of Treasury disbursements on salaries alone as alluded in the article in question,” Gwasira said.

He said the company was a responsible corporate citizen sensitive to the needs of all its stakeholders and had strategically managed to stabilise the power supply situation through the eradication of load-shedding since December 2015.

NewsDay has since established that it is the Energy ministry which was spending around 76% of funds it is allocated by Treasury on salaries.

Mbiriri last week said out of the $839 845 the ministry was allocated by Treasury this year, $640 392 went to salaries for the government staffers.