Zesa Holdings, owes Bulawayo City Council (BCC) $110 million in outstanding royalties as at April 30 this year, but the power utility is refusing to acknowledge the debt, latest council minutes show.
BY MTHANDAZO NYONI
On the other hand, BCC owes Zesa over $86 million in unpaid electricity bills.
According to the minutes, BCC is billing Zesa for the use of a power station but the power utility is refusing to pay for it.
“The figure has been excluded in the management report since Zesa has refused to acknowledge the debt. The matter has, however, been taken to court where both parties will appear soon,” the report read in part.
“Management’s view though is that it would not aid council to make sound decisions if the figure was included.”
The royalty fees are $860 284 per month, council said.
“As at April 30, 2017 the royalty bill stood at $110 422 131. If the figure were to be included, our debtors figure would stand at $266 344 743,” the report reads in part.
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“The financial director is proposing to include it in the report from the month of May.”
In 2016, the Zimbabwe Electricity Transmission and Distribution Company (Zetdc), a subsidiary of Zesa Holdings, approached the High Court seeking an order compelling BCC to settle its $80 million power debt.
The matter is pending in the courts.
The city’s legal officer advised that Zesa had taken all the 32 local authorities to court and the matters were still pending.
Town clerk, Christopher Dube said Zesa took rural district councils to court and won because those councils did not own land.
However, it was different with urban local authorities because the land belonged to these councils.
Besides Zesa’s debt, BCC owes various creditors such as National Social Security Authority, Municipal Provident Fund and the Zimbabwe Manpower Development Fund and TelOne among others, more than $35 million.
In total, BCC’s debt as at April 30 stood at $160 million.
