Commercial Farmers Union of Zimbabwe

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ZESA

Why we’re stuck in the dark

Why we’re stuck in the dark

http://www.kubatanablogs.net/kubatana/?p=8505

Don’t know about you but 16 hour long power cuts are starting to get me 
down. This update from the Zimbabwe Power Company helps to explain the 
current spate of bad power:

It is with regret that I advise of the fact that we (Zimbabwe Power 
Company) lost the four producing units at Hwange Power Station yesterday 
afternoon (Wednesday 25th April). One unit was brought back onto the grid 
last night and we hope to bring a second, larger unit, back around 4am 
tomorrow (Friday 26th April). Repair on the third unit is scheduled for 
completion such that it will be ‘returned to service’ on Saturday morning. 
Two phase one (smaller) units are having their rotors re-wired in South 
Africa – this is major work.

Kariba has five units on line with the sixth due back on the grid in 
mid-May after routine, but critical, maintenance ahead of winter.

The Hwange and Kariba expansion plans remain on program at this time. 
The tenders are out and close in June. this will be followed by 2 three 
month periods for tender review and finalisation of funding/award. 
Thereafter construction will take between three to four years (2016-17).

R. Maasdorp
Chairman ZPC

This entry was posted on April 27th, 2012 at 12:41 pm by Amanda Atwood

‘Huge Fault’ at Hwange Plant leaves Harare without power

‘Huge Fault’ at Hwange Plant leaves Harare without power

http://www.swradioafrica.com/

By Tererai Karimakwenda
27 April 2012

A technical fault is said to be the cause of a power cut that left Harare 
without power since very early Thursday morning. The state-owned Zimbabwe 
Electricity Supply Authority (ZESA) blamed a “huge fault” at the Hwange 
thermal power plant for the problem, which forced many businesses to stop 
operations and others to shut down.

ZESA is functioning with old equipment that has not been well maintained or 
properly serviced since independence in 1980. Mismanagement and corruption, 
which have destroyed other parastatals, are also contributing to the utility 
company’s ongoing crisis. Many areas of the country go without power 
regularly and power cuts have become a way of life.
ZESA is also owed millions of dollars by top government officials who have 
received power for years without making payments. SW Radio Africa reported 
earlier this month that the national power utility is under increasing 
pressure to switch off these officials, with the first family being among 
the worst offenders.

The Mugabe family reportedly owe ZESA more than US$300,000 as of December 
2011. Despite this, ZESA has been cutting off power for the ordinary 
citizens who are struggling to pay much less. Energy and Power Development 
Minister Elton Mangoma has said ZESA is owed more than $140 million by 
consumers.

Human rights activist Tariro Manhendere told SW Radio Africa that although 
some parts of the capital got power back Friday afternoon, many others, like 
Kuwadzana and Dzivarasekwa, still had none. She said these areas experience 
power cuts more frequently and for longer periods than the Central Business 
District.

Asked how bad this week has been in terms of power cuts, Manhendere said: 
“It’s quite this frustrating. You can’t plan anything, especially those that 
are in home industries who have no choice.”

The frustrated activist said vendors who sell products that need 
refrigeration, like meat, lose money when their products go bad but out of 
desperation sometimes still try to sell them.

More repairs to the aging equipment at Hwange Power Station were expected 
over the weekend and reports quoted ZESA spokesman Fullard Gwasira as 
saying: “Technicians and engineers are working flat out to fix the problem.

Zimbabwe's Power Outages to Worsen as Gov't Negotiates With Mozambique

Zimbabwe's Power Outages to Worsen as Gov't Negotiates With Mozambique

http://www.voanews.com

02 April 2012

ZESA is owed more that $550 million by customers and Mangoma said 
disconnections of defaulters over the next few days will help raise the 
money needed to reduce the debt with Mozambique

Jonga Kandemiiri | Washington

Zimbabwe's Energy Minister Elton Mangoma says the country's power utility, 
ZESA, needs to raise $40 million by the end of the month to reduce its $80 
million debt with Mozambique’s Hydro Cahora Bassa, which last month reduced 
power supplies to Harare citing non-payment.

Mangoma said intensified disconnections of defaulters would help raise the 
money. He said the country's power supply situation could worsen over the 
Easter break if ZESA fails to raise the funds by Friday.

The minister, who held meetings in Maputo last week with his Mozambican 
counterpart and the country's energy officials, told the VOA that Cahora 
Bassa wants Harare to pay at least $40 million dollars before it can up 
power supplies to Harare.

“They agreed to increase power supply once we have made our payment," said 
Mangoma. "They expecting us to bring our debt to below $40 million and they 
said that is when the power supply would be increased for us.”

“For us to have reduced load-shedding during the holidays, it all depends on 
whether we are able to mobilize the required resources by Friday," said the 
minister.

ZESA is owed more that $550 million by customers. Mangoma said 
disconnections of defaulters over the next few days will help raise the 
money needed to reduce the debt with Mozambique.

“What this means is more power disconnections for everyone,” he said.

“Although I cannot disclose the amount we have at the moment, we are also 
going to apply multiple methods to raise the money and Government also has 
to look for other alternatives like loans or where to borrow,” the minister 
said.

Load-shedding could worsen: Mangoma

Load-shedding could worsen: Mangoma

http://www.newzimbabwe.com/

01/04/2012 00:00:00
by Staff Reporter

POWER supply problems could worsen across the country over Easter unless the 
US$76 million debt owed to suppliers in Mozambique is significantly reduced, 
a cabinet minister has warned.

Energy Minister, Elton Mangoma said Zimbabwe needs to reduce its debt to 
under US$40 million by Friday to ensure the current power supply problems do 
not get worse.

“They (Mozambique) agreed to increase power supply once we have made our 
payment. They expecting us to bring our debt to below US$40 million and they 
said that is when the power supply would be increased for us,” Mangoma told 
the state-owned Herald newspaper.

“For us to have reduced load-shedding during the holidays, it all depends on 
whether we are able to mobilise the required resources by Friday.

“If that is not the case, it means the situation would remain the same and 
we will continue with the power outages until we set off what we owe.”

Mangoma said ZESA – which is owed more that US$550 million by customers --  
would step-up disconnections of defaulters over the next few days to help 
raise the money needed to reduce the debt with Mozambique.
“What this means is more power disconnections for everyone,” he said.

“Although I cannot disclose the amount we have at the moment, we are also 
going to apply multiple methods to raise the money and Government also has 
to look for other alternatives like loans or where to borrow.”

Zimbabwe generates 1,300MW of electricity which was way short of the daily 
national requirement of about 2,200 megawatts.
The country has plugged the gap with imports from regional suppliers but 
many have cut back supplies due to payment problems.

The shortages have forced ZESA to ration supplies to both commercial and 
domestic users with some areas going for more than 10 hours per day without 
power.

Zimbabwe shortlists bids for enlarging power plants

Zimbabwe shortlists bids for enlarging power plants

http://af.reuters.com

Tue Mar 27, 2012 5:05pm GMT

JOHANNESBURG (Reuters) - Zimbabwe has short-listed eleven bidders for the 
expansion of its Hwange and Kariba South power plants, with a winner 
expected to be announced in the third quarter of this year, its energy 
minister said on Tuesday.

It has been battling power shortages due to growing demand and ageing 
plants, limiting supplies to industry and the key mining sector. Zimbabwe 
produces around 1,000 MW of electricity, compared with peak demand of 2,200 
MW.

The extension of the Hwange thermal power station will add 600 megawatts 
(MW) to the Zimbabwean national grid, while the extension of the Kariba 
South hydro plant will add 300 MW.

Elton Mangoma said companies from China, India, South Korea, Italy and 
Brazil were among the shortlisted and the firms have until the first week in 
June to submit a detailed proposal.

"I'm hoping that it will not take more than three months to adjudicate and 
thereafter award the tender. We are hoping that in the fourth quarter we can 
move on the projects," he told Reuters on the sidelines of an African power 
conference in Johannesburg.

Mangoma said additional units at the two plants will be operated in a 
public-partnership between the Zimbabwe government and whoever is chosen to 
build the plants.

The minister said Zimbabwe still owed around $85 million in unpaid power 
imports, mainly to neighbouring Mozambique.

Mangoma said he was meeting Mozambican officials on Thursday to address the 
issue, especially after Mozambique halved its exports to Zimbabwe to 50 MW 
due to the unpaid bills.

The minister said that together with neighbouring Zambia his country had in 
February decided to revive the Batoka Gorge hydroelectric power project, 
estimated to cost $2.5 billion, and expected to supply a total of 1,600 MW 
to the two countries.

The two neighbours will look for an independent power producer to construct 
the plant on a build-operate-transfer basis.

The 1,600 MW, which could later be upscaled to 2,000 MW, would be evenly 
split between the two countries, he said.

Mangoma said the project was in the preliminary stages and it would be too 
early to comment on time lines.

In the meantime, the minister hoped to convince utilities in the region to 
boost trade of electricity during off-peak times to alleviate the most 
pressing shortages.

Zesa scam divides government

Zesa scam divides government

http://www.dailynews.co.zw

By Xolisani Ncube, Staff Writer
Monday, 26 March 2012 11:59

HARARE - Sharp divisions have emerged in government over huge Zesa Holdings 
debts owed  by President Robert Mugabe and his allies in Zanu PF which they 
now say have been used by the MDC to prop its electoral chances in future 
polls.

A seething Mugabe and his colleagues in Zanu PF last week reportedly 
targeted Energy minister Elton Mangoma for “breaching confidentiality” 
clauses by “leaking” to the Daily News their ballooning Zesa bills which run 
into millions of dollars.

This followed a stinging expose by the Daily News which named Mugabe  and 
his officials among the top defaulters at a time when the majority of the 
poor Zimbabweans were living in darkness following massive disconnections by 
Zesa for not paying their bills.

Mugabe and several Zanu PF ministers last Tuesday reportedly confronted 
Mangoma over the Zesa bills demanding answers why their debts were published 
in the Daily News.

Mangoma however said he was unaware how the bills reached the Daily News. He 
told an investment conference in Harare last week that he respected client 
confidentiality.

The Daily News was told yesterday that Mangoma now feels unsafe after the 
fierce confrontation while senior employees at Zesa are said to be  also 
living in fear over the published list of VIP defaulters.

The Zanu PF side of government’s anger was reflected on Saturday in the 
state media when a top government official writing under the pen name 
Nathaniel Manheru claimed that the Zesa  scandal was carefully designed by 
the MDC to create havoc in Zanu PF.

In a column headlined, Inventing a matching scandal, Manheru partly wrote: 
“Out of desperation, MDC-T today pushes its ministers, some of them 
previously arraigned before the courts for questionable conduct, pushes them 
hard to invent matching scandals to incriminate other players so the ugly 
spotlight is shared.

Its thrust is to democratise blame, so judgment is shared. It is a posture 
of a party convinced  about its own incorrigibility.

“Is it not incredible that a whole accountant is pushed to re-classify a 
well documented debt into a screaming scandal? And does so the same weeks 
his counterpart, Finance minister Biti, is publishing a debt settlement 
strategy for Zimbabwe?"

“Or is he about to name and shame Zimbabwe for the scandal of defaulting on 
its debts the same way Zesa clients have? Is owing in business a scandal 
mister accountant? Which business does not carry obligations?"

“Clearly here is a man sidestepping professional knowledge to serve a cause, 
in the process becoming quite stupid by standards of his profession. I 
suppose next week we will read about Sable Chemicals,
itself the biggest single user of power it cannot always pay for in time."

“More dramatically, Mangoma will name and shame Zesa for the scandal of not 
paying its Mozambican counterpart to the tune of well over US$40 million. 
The whole thing does not make sense at all.”

Nathaniel Manheru is also believed to be one of Mugabe’s top aides.

But a senior MDC official yesterday dismissed the notion that the Zesa 
scandal is being used for political mileage for their party.

“The issue here is simple. They must just simply pay their bills. They all 
confirm that they owe Zesa lots of money so what is the problem. Since 
independence, they were grabbing things for free and now the ball game has 
changed and they are crying,” he said.

The scandal also revealed multiple ownership of farms as most bills emanate 
from the grabbed properties.

The conspiracy to bleed state power firm Zesa by not paying bills running 
into millions ran through the President’s Office and state institutions to 
ministers, the military, MPs and Zanu PF district offices.

A few of Prime Minister Morgan Tsvangirai and Welshman Ncube’s people were 
also in the mix with smaller amounts. But the impunity was shocking.

Top ministers — some who claim to hold vast riches — and just about everyone 
and state institutions connected to the system amassed huge bills at a time 
when Zesa was enforcing a punishing load shedding schedule on the majority 
poor due to cash flow problems.

The First Family through their many farms owed Zesa nearly $345 000 as at 
December 31, 2011.

Manicaland governor Chris Mushowe led the pack with an astounding bill of 
$367 606, 07.

Didymus Mutasa, the minister of State in Mugabe’s office owed State 
parastatals a massive $179 590, 31, Saviour Kasukuwere, who as 
Indigenisation and Economic Empowerment minister is leading Mugabe’s 
campaign to “spread wealth to the people”, raked up $100 602,22 in unpaid 
Zesa bills as at December 31, 2011.

Sydney Sekeramayi, Marondera-Wedza Zanu PF Senator, who is also State 
Security minister and a long time Mugabe loyalist, owed $108 296.

The Daily News yesterday could not get in touch with Mugabe’s spokesperson 
George Charamba or Agriculture minister Joseph Made, who acts as the 
President’s farm manager to check if the First Family had managed to settle 
their bills.

However, sources at Zesa said a number of VIPs named in the scandal were 
last week making inquiries on their bills with some making payment plans to 
clear their debts.

Zesa on the other hand owes Hydro Cahora Bassa (HCB) $80 million accrued 
from imported power from the Mozambique power company and this has resulted 
in HCB reducing its supply to Zimbabwe demanding payment.

Mangoma told the Daily News yesterday that he will be travelling to 
Mozambique this week to try and negotiate for an  increase of power exported 
to Zimbabwe by HCB.

“I will be travelling to Mozambique this Thursday to negotiate with 
authorities from that country so that we can have an increase in supply,” 
said Mangoma.

Energy Minister Promises Improvement Soon in Delivery

Energy Minister Promises Improvement Soon in Delivery

http://www.voanews.com

23 March 2012

Energy Minister Elton Mangoma said power utility, ZESA, will soon ease load 
shedding after successfully upgrading generation capacity at Hwange and 
Kariba power stations.

Violet Gonda | Washington

Energy Minister Elton Mangoma said load shedding will ease across the 
country in the next few days after the Zimbabwe Electricity Supply Authority 
upgraded generation capacity at Hwange and Kariba power stations.

The minister, who was speaking Thursdays at an investment conference in 
Harare, also said plans are underway to disconnect defaulters who owe the 
power utility a total of $550 million in unpaid bills, money that can help 
ZESA settle huge debts owed to neighbouring countries for electricity 
supply.

Meanwhile, legislators traded insults in parliament Thursday following 
recommendations by Heya Shoko from the Tsvangirai-led MDC that defaulting 
lawmakers be barred from parliament.

There was an uproar when the Bikita West lawmaker went on to name and shame 
the major defaulters who he described as “ZANU PF MPS land grabbers”, such 
as  Chivi Central MP Munyaradzi Paul Mangwana  and Manicaland provincial 
governor Christopher Mushohwe who allegedly owe ZESA $74 000 and $367 000 
respectively.

Director Precious Shumba of the Harare Residents Trust said poor management 
of public resources across the political divide, and a culture of impunity 
is contributing to the weakening of state institutions.

“It also exposes the failure of the debt collection system in ZESA Holding.” 
Shumba asked: “How could they allow such a situation to prevail where a 
consumer who is using electricity for free goes unchecked for such a long 
time, and wait for this outcry?”

Shumba said state establishments have to be strengthened as many officials 
fear victimization and abuse of power by senior civil servants, “but we have 
very weak institutions where people are only safeguarded because of who they 
know or which political party they belong to. That is the tragedy.”

Outrage over hefty allowances for ZESA executives

Outrage over hefty allowances for ZESA executives

http://www.swradioafrica.com

By Tichaona Sibanda
26 March 2012

The director of the Harare Residents Trust (HRT) has condemned the recent 
hefty allowances awarded to ZESA executives, saying the pay deal is an 
insult to the hard-pressed consumers who have to deal with daily power cuts.

The top hierarchy at the utility power company has increased their 
allowances by up to 75 percent, backdated to 2009, according to the 
Financial Gazette.

However the weekly paper said allowances for non-managerial staff have been 
slashed by 35 percent. Precious Shumba the director of HRT told SW Radio 
Africa on Monday that this is the reason why his organization has repeatedly 
criticized ZESA holdings for poor management and incompetence.

‘Our criticism has been without malice. It has been informed by the 
situation on the ground. ZESA has been able to mobilize resources to 
rehabilitate the electricity distribution network. They also had the 
capacity to reform the billing system, but the challenge they face is what 
to prioritize with the money they have,’ Shumba said.

He added: ‘They are now more focused on personal interests rather than 
institutional interests. The economic revival of Zimbabwe is based on ZESA’s 
ability to generate enough power to meet the demand of various stakeholders, 
including industries.’

The country produces about 1320 megawatts of electricity and requires 2100 
megawatts. The balance is imported from Mozambique, Zambia and the DRC. 
Until March last year South Africa’s Eskom supplied 400 megawatts.
ZESA’s development manager, Ikhupuleng Dube, revealed that the country will 
continue to have serious load shedding and power outages until 2014.

The power company is struggling to raise the US$125 million needed to repair 
the outdated Hwange Power Station generators, with US$8 billion needed for 
the country, to restore optimum power production levels.

There has been growing outrage in the country following the disclosure of 
the names of top government officials who have defaulted on their power 
bills. The Daily News has named and shamed several cabinet ministers and 
Robert Mugabe and his wife.

The outstanding payments by several top government officials, is believed to 
be over $500 million. Mugabe and his wife Grace owe ZESA over US$300,000 as 
of December 2011.

Heads to roll at ZESA

Heads to roll at ZESA

http://www.financialgazette.co.zw

Friday, 23 March 2012 13:39

EXECUTIVES at ZESA Holdings have awarded themselves hefty increases in their 
allowances of up to 75 percent, backdated to 2009, at a time the loss-making 
power utility has intensified both its revenue collection and load shedding, 
The Financial Gazette can exclusively reveal.
Ironically, allowances for non-managerial staff have been slashed by 35 
percent to contain the ballooning overheads in spite of recommendations for 
a 70 percent upward adjustment of the same by the National Employment 
Council for the energy industry.
Pressure has now been brought to bear on the ZESA board and management by 
unions and State bureaucrats to explain the inflationary adjustments that 
are way out of step with the prevailing pricing trends.
Inflation, dubbed Zimbabwe’s Number One enemy, receded in January to 4,3 
percent from 4,9 percent in December. The hefty salary increases are 
therefore seen not only widening the disparities between salaries for 
managerial and non-managerial staff but angering ZESA custo-mers who are 
unhappy with the high electricity tariffs.
Business has been passing on the extra cost to the consumer in the form of 
higher prices, worsening the inflation outlook. Impeccable sources at ZESA 
said heads were likely to roll, starting at board level upon the expiry of 
the office tenures of certain of its members.
Adding to the pressure is the suspicion within the corridors of power that 
there could be a hidden political agenda behind an expose` naming and 
shaming top government officials owing the power monopoly huge sums of 
money.
The leaks came as a huge embarrassment to several government officials, who 
are fuming over what they perceive to be a flagrant breach of client 
confidentiality and the parastatal’s shambolic billing.
The anger has been directed at top ZESA officials who could pay dearly for 
their perceived transgressions by losing their jobs.
ZANU-PF officials suspect that the matter was being handled in a partisan 
manner given that the energy portfolio is presided over by a Movement for 
Democratic Change appointee. They also fear that the shenanigans at the 
power utility could spark public protests at a time the country is eyeing 
fresh elections to bring closure to the shaky government of national unity.
It however, emerged this week that the leaks were masterminded by 
non-managerial employees disgruntled by the reduction in their allowances 
and the fact that their bosses had denied them salary increases.
The Zimbabwe Energy Workers’ Union (ZEEWU) this week said ZESA managers were 
bleeding the parastatal, owed in excess of US$450 million by both domestic 
and commercial consumers.
Representatives of ZEEWU, made up of ZESA affiliates — the Zimbabwe National 
Water Authority (ZINWA), Green Fuel and the Rural Electrification Agency 
(REA) — were yesterday locked in meetings with management at ZESA as it 
emerged workers at the power company were increasingly getting agitated.
This week, ZEEWU told Parliament that government chefs’ failure to settle 
electricity bills was a contributory factor to the poor salaries employees 
were getting. It alleged that their respective companies — ZESA, ZINWA and 
REA — were failing to pay them due to the huge amounts the utilities are 
owed.
“The bad debtors who are not paying their utility bills are the big gurus, 
and we feel if they were to pay the outstanding amounts our companies would 
be able to pay us,” union president, Angeline Chitambo     told the 
Parliamentary Portfolio Committee on Public Service and Labour.
Energy and Power Development Minister, Elton Mangoma, confirmed this week 
that the terms of office for some board members would be coming to an end in 
June, but refused to divulge whether or not he would renew their terms.
“Any changes would have nothing to do with mounting pressure regarding the 
issue of debts but some board members’ terms of office are coming to an end 
around June,” he said.
But Minister Mangoma, who yesterday denied he was under pressure to fire top 
managers, said as far as he was concerned there were no new awards at ZESA 
as alleged by non-managerial staff.
“I have not seen or approved any increase. Any increase on salaries or 
benefits has to be approved by the minister,” he said.
Mangoma, however, revealed that an investigation was underway to fish-out 
the source of the leak to the media regarding individual debtors.
“That issue is very unfortunate. Obviously we are looking into it. We are 
investigating to find out who leaked the list to the media,” he said.
Fullard Gwasirai, the ZESA spokespeson, also denied there was a 75 increment 
on the allowances of top executives, saying employees were misrepresenting 
facts.
“There is nothing like that (that executives awarded themselves increments). 
As for non-managerial staff, you know that people will always want more 
money. Generally people are not always happy with their salaries,” said 
Gwasirai.
Economist, Willia Bonyongwe said while citizens should pay for services 
rendered by the power company, ZESA tariffs were above normal.
ZESA is one of the utilities that has had the most rapid tariff increases 
after the country adopted multiple currencies in 2009.
Cumulatively, these tariff increases are close to 100 percent, justifying 
calls for their review given the liquidity challenges on the market and the 
low profit margins business is getting.
“As for agriculture, there are limited credit facilities on the market and 
farmers have to wait for a long time to get paid. Agriculture has always had 
a tariff of its own, which was abolished last year. That is when bills shot 
up. When you look at margins in agriculture, you cannot produce food under 
these tariffs”, said Bonyongwe.
“Under the Short Term Emergency Recovery Programme, there was a proposed 
discount of 20 percent on commercial rates, which would benefit farmers and 
this was not implemented because the fiscus has no capacity for that 
subsidy. A proposal to forgo value added tax (on the electricity bill) and 
the rural electrification levy was then proposed to enable government to 
effect this subsidy but again that recommendation was not followed through. 
It is important to support local agriculture because depending on imports 
and donors is not sustainable,” she       added.
Power outages intensified countrywide this week with most of the businesses 
and government offices running on generators.
There is also anger that ZESA has mainly been switching off ordinary 
citizens, sparring so-called sensitive or classified government bureaucrats 
some of whom owe between US$150 000 and US$350 000.
Industry, which is currently struggling to rump-up production, has also 
taken the power utility to court over what it believes are unjustified 
tariff increases.
Last August, the Competition and Tariff Commission ordered ZESA to write off 
all pre-2009 bills and justify some load-shedding programmes as well as to 
bill their clients on actual meter readings.
The power utility has since appealed the order at the Administrative Court.

ZESA to ease load-shedding: Mangoma

ZESA to ease load-shedding: Mangoma

http://www.newzimbabwe.com

22/03/2012 00:00:00
by Phyllis Mbanje

POWER supplies are expected to increase across the country over the next few 
days after ZESA completed upgrades to the Hwange and Kariba power stations, 
Energy Minister, Elton Mangoma has said.

Zimbabweans have experienced increased power supply interruptions over the 
past two weeks with some areas going for more than 19 hours without 
electricity.

The poorer high density suburbs were the hardest-hit with some going for two 
days without power.

However, speaking at an investment conference in Harare Thursday Mangoma 
said the situation should improve after generation capacity at Hwange and 
Kariba power stations was increased by 4 and 6 units respectively.
Mangoma also said the ministry would soon launch a major expansion project 
at Hwange.

“Exciting things are happening there and by the first week of June proposals 
for contracts will have been submitted and an evaluation will follow 
thereafter,” he said.

Zimbabwe does not generate enough electricity to meet its needs and plugs 
the gap with imports from neighbouring countries which are, however, 
reducing supplies due to non-payment.

“What are getting from Mozambique is not good enough and we feel that some 
people are going behind our backs trying to influence them not to deal with 
us but we are neighbors,” Mangoma said.

“Our huge challenge then is servicing that debt and hence it is important 
for consumers to own up and pay their bills. We are not backing down from 
disconnecting defaulters after all there is $550million of unpaid bills.”

A privately-owned daily recently published a list of 41 senior government 
officials including cabinet ministers who allegedly owe the power utility 
hundreds of thousands of dollars.

Mangoma – who has previously conceded that senior government officials were 
among ZESA’s major defaulters -- described the “leak” as regrettable but 
said more needed to be done to encourage people to pay their bills.

“Zimbabweans have just developed a culture of not wanting to pay. It’s like 
they are saying I can get away with not paying,” he said.
“If you are not paying and do not have a payment plan then you are not a 
serious economic player.”

Mugabe attacks Mangoma over leak of ZESA bills

Mugabe attacks Mangoma over leak of ZESA bills

http://www.swradioafrica.com

By Lance Guma
23 March 2012

Robert Mugabe and his ZANU PF ministers on Tuesday used a cabinet meeting to 
launch an attack on Energy Minister Elton Mangoma, blaming him for leaking 
details of their huge unpaid electricity bills.

Last week the Daily News exposed how Mugabe and his wife Grace owe power 
utility ZESA over US$345,000 in unpaid electricity bills, incurred at their 
multiple farms. Also exposed, with more than US$300,000 in outstanding 
bills, were Manicaland Governor Chris Mushowe and CIO boss Happyton 
Bonyongwe.

A report in the Zimbabwe Independent says Youth and Empowerment Minister 
Saviour Kasukuwere, who owes ZESA US$100,602, used ‘strong language’ in 
accusing Mangoma of leaking the ‘confidential information’ about the bills 
“to embarrass Mugabe and ZANU PF ministers, while scoring political points. 
Mangoma recently announced the launch of a crackdown on so-called ‘VIP 
defaulters’ but denied leaking the bills to the press.

It’s reported Mangoma was outnumbered during the meeting as Prime Minister 
Morgan Tsvangirai, his deputies Thokozani Khupe and Arthur Mutambara, were 
not present.

A detailed breakdown of how much Mugabe and his wife Grace owe ZESA was 
provided by the paper.

“Four plots at Foyle Farm plus a cottage as well as Gushungo Dairy stood at 
US$143 667 while Gwebi Woodlot 1st Farm owed US$24 901. Sigaro Farm 1st PO, 
2nd PO, 3rd PO and 4th PO owed a total of US$78 218.”

“The First Lady Grace Mugabe’s Iron Mask Cottage, Iron Mask 2nd POIN, Iron 
Mask 3rd POIN, Mazowe Wholesalers, Annant Cottage, Iron Mask Farm 5th, 6th, 
7th and 8th owed a total of US$98 306 as at December 31 2011.”

Also owing the state owned power utility is Defence Minister Emmerson 
Mnangagwa (US$240,824), Transport and Communications Minister Nicholas Goche 
(US$158,245) “for his plots at Ceres Farm and businesses, which include 
grinding mills, a farm store and a service station.”

Presidential Affairs Minister Didymus Mutasa owes US$179,590, Air force 
chief Perence Shiri US$26,947 for his Hopdale Farm, while police boss 
Augustine Chihuri’s owes US$106,778 for his homestead and his Inyika farm.

Speaking to SW Radio Africa political commentator Phillip Pasirayi said the 
attitude of the senior government and military chiefs to the leaking of the 
bills showed how they are completely unused to any form of accountability.

Instead of owning up or paying the bills they were “taking everyone for 
granted” and acting like Zimbabweans owe them something.

Also in the news for a similar reason was central bank Governor Gideon Gono, 
who owes the state owned NetOne mobile network US$800,000 in unpaid phone 
bills stretching over two years. According to the South African Sunday Times 
newspaper, NetOne has now dragged Gono to court demanding payment.

Mugabe fumes over Zesa bill

Mugabe fumes over Zesa bill

http://www.thestandard.co.zw/

Friday, 23 March 2012 10:07

Owen Gagare

ENERGY and Power Development minister Elton Mangoma (pictured) came under 
fire from President Robert Mugabe and Zanu PF cabinet ministers at a 
high-level meeting on Tuesday in which leaked Zimbabwe Electricity Supply 
Authority (Zesa) bills, including disclosures that the First Family owed the 
power utility more than US$345 000 in unpaid power bills, featured 
prominently.

Several ministers, senior civil servants as well as service chiefs were 
named among people who have not been paying their electricity bills 
resulting in Zesa failing to settle its debts and ensure adequate power 
supplies. This has caused  severe load-shedding, particularly in the 
high-density areas.
While defaulting VIPs were not switched off, poor people, whose bills are 
comparatively small, always live in darkness or without electricity for 
domestic use.

Official sources say the Zesa bills issue came up for discussion at the 
charged meeting, chaired by Mugabe, after Indigenisation minister Saviour 
Kasukuwere accused Mangoma of leaking the “confidential information” about 
the bills to embarrass Mugabe and Zanu PF ministers, while scoring political 
points. Mangoma angrily denied the allegations.

Sources said after Kasukuwere’s outburst, Industry and Commerce minister 
Welshman Ncube chipped in to rescue Mangoma who was under siege, saying the 
Indigenisation minister’s language was improper, although the issue he 
raised was legitimate. Ncube, sources said, indicated it was unprofessional 
for bills to be leaked because they were meant to be a private issue between 
Zesa and its clients.

A number of ministers felt the relationship between a client and Zesa should 
be similar to that of a client/lawyer, client/banker or patient/doctor 
relationship where confidentiality was paramount.

After Mangoma was attacked by Kasukuwere who accused him of leaking the Zesa 
bills and Ncube had protested the strong language, Mugabe joined the fray to 
renew assaults on the MDC-T minister. Kasukuwere is also one of the VIPs not 
paying their bills.

“The president (Mugabe) stepped in and said it did not matter who leaked the 
information because the buck stopped with Mangoma since Zesa is under his 
ministry,” said a source. “He charged and demanded that Mangoma must accept 
responsibility.”

While holding his line insisting he was not personally responsible for 
leaking of the information, an angry Mangoma was said to have accepted 
responsibility and promised to issue a statement assuring the public of 
confidentiality on their bills.

However, other Zanu PF ministers, who apparently wanted to defend and 
impress Mugabe, refused to let Mangoma get away with it. They attacked him 
around, fuelling a heated and long debate on the controversial unpaid bills.

Mines minister Obert Mpofu was said to have insisted Mangoma had leaked the 
information given that he had promised to “name and shame” bigwigs who were 
not paying their electricity bills. Mangoma had previously raised the issue 
in cabinet and in parliament but he maintained on Tuesday that he was not 
behind the leaks.

Mangoma told the Parliamentary Portfolio Committee on Mines and Energy last 
month that some government ministers and senior civil servants had not paid 
their power bills since adoption of the multi-currency system in 2009.

He has been on a crusade to urge defaulters to pay their electricity bills 
to enable Zesa to settle a US$80 million debt owed to Hydro Cahora Bassa of 
Mozambique.

Zesa is owed in excess of US$450 million by defaulting consumers. Mangoma 
warned last month that his ministry had taken a position to switch off all 
defaulters “without fear or favour”.

Mangoma was left exposed at the Tuesday meeting since his party boss and 
Prime Minister Morgan Tsvangirai did not attend the meeting as he is out of 
the country. Deputy Prime Ministers Arthur Mutambara and Thokozani Khupe, 
who could have also rescued him, were also not at the meeting while MDC-T 
secretary-general and Finance minister Tendai Biti did not intervene.

This gave the Zanu PF camp, led by Mugabe, a free rein to attack Mangoma.

Mangoma confirmed to the Independent yesterday the issue was discussed on 
Tuesday. He said he accepted that it was wrong for people’s debts to be 
leaked, saying he had clearly stated this position to Mugabe and his fellow 
ministers.

“My belief is whatever is owed is private and should not be for public 
consumption and therefore as the minister responsible I can only apologise 
to those whose accounts were made public. I stated that position and it’s 
the same position I’m stating now,” said Mangoma.

He however insisted he did not leak the bills and charged it was 
“mischievous” for anyone to think he had done so.

The leaked Zesa bills allegedly showed that as at December 31 2011, Mugabe’s 
family owed more than US$345 000 to the power utility.

The electricity bill for the first family’s four plots at Foyle Farm plus a 
cottage as well as Gushungo Dairy stood at US$143 667 while Gwebi Woodlot 
1st Farm owed US$24 901. Sigaro Farm 1st PO, 2nd PO, 3rd PO and 4th PO owed 
a total of US$78 218.

The First Lady Grace Mugabe’s Iron Mask Cottage, Iron Mask 2nd POIN, Iron 
Mask 3rd POIN, Mazowe Wholesalers, Annant Cottage, Iron Mask Farm 5th, 6th, 
7th and 8th owed a total of US$98 306 as at December 31 2011.

Defence minister Emmerson Mnangagwa reportedly owed US$240 824 while the 
Transport and Communications minister Nicholas Goche owed US$158 245 for his 
plots at Ceres Farm and businesses, which include grinding mills, a farm 
store and a service station.

Presidential Affairs minister Didymus Mutasa owed US$179 590 and Central 
Intelligence Organisation Director-General Happyton Bonyongwe owed US$350 
989 although he has made significant moves to clear his debt.

Air force chief Perence Shiri owed US$26 947 for his Hopdale Farm while 
police boss Augustine Chihuri’s homestead and his Inyika Farm owed US$106 
778.

Kasukuwere, who was breathing fire on Tuesday, owes Zesa US$100 602.

Defaulting Cabinet Ministers Negotiate to Settle Huge Electricity Bills

Defaulting Cabinet Ministers Negotiate to Settle Huge Electricity Bills

http://www.voanews.com

21 March 2012

ZESA spokesman, Fullard Gwasira told VOA's Blessing Zulu the power utility 
is happy that government officials and other customers have started settling 
their bills while some are still negotiating payment plans

Blessing Zulu | Washington

Senior Zimbabwean officials, among them President Robert Mugabe and many new 
black commercial farmers, have opened talks with the country's power 
utility, the Zimbabwe Electricity Supply Authority, to see how they can 
settle their bills, going into hundreds of thousands of dollars.

Private media have since the weekend been publishing the names of defaulting 
senior government officials following a decision by Mozambique's power 
utility, Hydro Cahora Bassa to cut electricity exports to Zimbabwe.

Their exposure has, however, raised tensions in the rickety government of 
national unity.

ZESA sources told the VOA that the majority of the ministers have been told 
to pay 25% of what they owe and settle their bills within six months or risk 
being switched off completely.

Most cabinet ministers say they want to sell their produce first before 
settling their huge bills.

President Mugabe and vice president John Nkomo lead the list of defaulters. 
Other senior government officials owing between $50,000 and $350,000 include 
Defense Minister Emmerson Mnangagwa, Minister of State in the President’s 
Office Didymus Mutasa, State Security Minister Sydney Sekeramayi, 
Information Minister Webster Shamu, Indigenisation Minister Saviour 
Kasukuwere and  Higher Education Minister Stan Mudenge.

ZESA is struggling to offset a debt of $800 million dollars that includes a 
$75 million owed to Hydro Cahora Bassa.

Energy Minister Elton Mangoma says he is headed to Mozambique next week for 
negotiations with Hydro since it reduced exports to Zimbabwe from 200 to 50 
megawatts only over non payment of its electricity bill.

The Mozambican power utility maintains. though, that it never switched off 
Harare.

ZESA spokesman, Fullard Gwasira told VOA's Blessing Zulu the power utility 
is happy that government officials and other customers have started settling 
their bills while some are still negotiating payment plans.

Analyst Gladys Hlatyawayo says ZANU-PF ministers must pay up and not try to 
politicize the issue.

Prime Minister Morgan Tsvangirai told lawmakers last week that he had 
settled his $5,000 bill with ZESA, urging colleagues within both the MDC and 
ZANU-PF to do the same.

Farmers Engage Zimbabwe Power Utility Over Huge Outstanding Bills

Farmers Engage Zimbabwe Power Utility Over Huge Outstanding Bills

http://www.voanews.com/

20 March 2012

The Zimbabwe Electricity Supply Authority management confirmed Tuesday that 
members of the Zimbabwe Farmers Union and Zimbabwe Commercial Farmers Union 
are seeking reprieve from the state entity claiming that they are not 
generating a lot of income due to unreliable seasonal farming methods

Gibbs Dube | Washington

Some Zimbabweans, who forcibly took over farms from white commercial farmers 
under the country's controversial land reforms, have started engaging the 
state-owned power utility after failing to settle electricity bills, some as 
high as US$300,000.

The Zimbabwe Electricity Supply Authority management confirmed Tuesday that 
members of the Zimbabwe Farmers Union and Zimbabwe Commercial Farmers Union, 
hard-pressed by lack of funds to pay the bills, are seeking reprieve from 
the state entity, claiming that they are not generating a lot of income due 
to unreliable seasonal farming methods.

The farmers are asking ZESA to either reduce the bills or stop disconnecting 
power to their farms for failing to pay the required amounts.

Some of the non-paying farmers include President Robert Mugabe’s Gushungo 
Estates which owes ZESA US$300.000. Most members of Mr. Mugabe's cabinet and 
senior state officials also owe the power utility thousands of dollars.

ZESA in turn owes various entities US$800 million while consumers are 
failing to pay it at least US$400 million for electricity provided.

Agronomist Thomas Nherera said farmers have to craft cash flow projections 
which cover ZESA bills and other basic necessities.

Power cut hits Mugabe office, city

Power cut hits Mugabe office, city

http://www.dailynews.co.zw/

By Xolisani Ncube, Staff Writer
Tuesday, 20 March 2012 12:08

HARARE - Business came to halt in Harare’s city centre yesterday afternoon 
including at President Robert Mugabe’s Munhumutapa offices due to 
intermittent power cuts by the country’s rot- ridden, Zesa Holdings.

Munhumutapa offices which houses several core government offices was forced 
to switch on to a standby generator to continue government business.

The rolling power cuts which are increasing everyday as a result of an 
outstanding $80 million electricity debt to Mozambique are coming amid an 
expose by the Daily News that several senior government officials owe Zesa 
millions of dollars in unpaid bills.

The power cuts brought business to a halt at government offices, the courts, 
private offices and hospitals.

High Court Judge Justice Chinembiri Bhunu had to postpone a bail application 
hearing for MDC activists currently in custody on charges of murdering a 
police officer because the courtrooms had no lighting.

Court proceedings could also not continue because recording equipment could 
not function without electrical power.

Zesa has recently announced a punishing load shedding schedule for most 
parts of the country due to reduced power generation from Hydro Cahora Bassa 
(HCB) of Mozambique.

But Zesa keeps punishing the poor, by switching off electricity among the 
suffering people yet the VIPs, are left untouched although they owe 
millions.

Over the weekend, the power utility made a passionate plea to defaulters who 
include politicians to settle their bills so that it could use the money to 
increase its capacity to generate more power.

VIPs confirm Zesa bills

VIPs confirm Zesa bills

http://www.dailynews.co.zw/

By Bridget Mananavire, Staff Writer
Tuesday, 20 March 2012 12:01

HARARE - Zesa Holdings’ bid to protect senior government officials 
defaulting on paying their power bills has failed as some of the VIPs have 
personally confirmed to the Daily News that they are in arrears.

Residents also turned the heat on Zesa and urged the poorly-run parastatal 
to push the politicians some of whom it has been giving special treatment as 
“sensitive customers” to pay for their power usage and stop punishing poor 
Zimbabweans only.

The power utility has made a futile and amateurish attempt to cover up the 
embarrassment that came with the exposure of the defaulters by placing 
statements in newspapers dismissing the Daily News story.

Zesa bizarrely went an extra mile apologising to its defaulters and urging 
members of the public to dismiss our story.

But government officials who spoke to the Daily News yesterday confessed 
that they indeed owe Zesa huge sums of money in unpaid electricity bills.

Patrick Zhuwao, Zanu PF MP for Zvimba East who is also Mugabe’s nephew, said 
he owes Zesa and is yet to settle his bills. According to Zesa’s list of 
defaulters he owes the power utility $54 407,31.

“I am a tobacco farmer, I use lots of electricity. But I have since made 
payment arrangements with Zesa. I harvest once a year and that is when I can 
make my payments,” Zhuwao said.

Minister of State in the President’s Office Didymus Mutasa who owes $179 
590,31, said he was still discussing his bill with Zesa officials.

“There is absolutely nothing wrong I have done. I am meeting with Zesa 
officials because there is more to it than meets the eye,” he said.

Thamsanqa Mahlangu, a former deputy minister and MDC legislator had some 
explanation to make in confirming his bill.

“I was put there as the guarantor for my constituency, because I was paying 
for some of the underprivileged,” he said of his $2 248, 34 bill.

Oppah Muchinguri, Zanu PF’s Secretary for Women Affairs and a Cabinet 
minister said she like Zhuwao is a tobacco farmer and feels the Zesa bills 
are too high for her. She owes Zesa $53 699,69.

“I sell once a year but Zesa is on the high. There are ulterior motives 
because the publishing now makes it seem like we are criminals.

“Zesa knows we pay our bills, last year we paid around $40 000 in Zesa 
bills,” she said.

Indigenisation minister, Saviour Kasukuwere confirmed he owes Zesa while 
speaking to The Telegraph.

He said: “It’s no story here. I will pay my bill, but I am querying it 
because I am not sure the figures are right. Remember there was 
dollarisation in 2009.

“Also I am a farmer, I employ people, I have not yet been paid by the GMB 
and I am waiting for money for the last three or four months, and I am sure 
many of us are in the same situation. We will pay our bills.”

Harare Residents Trust (HRT), residents’ rights lobby group said the 
politicians’ bills are shocking.

“Zesa must halt the disconnections of suffering Zimbabweans and deal with 
government officials who owe hundreds of thousands. These are the same 
people bleeding the economy.”

“Residents are concerned over why Zesa is shielding the powerful and 
penalising the weak. They have failed to claim what is theirs. We call on 
Zimbabweans to do their own metre readings and flock to Zesa offices if they 
differ from what is on their bill sheets,” said Precious Shumba the HRT 
Coordinator.

Zesa spokesperson Fullard Gwasira said his organisation is not trying to 
shield anyone by denying the Daily News expose but was simply trying to 
protect client information.

“Suggestions that Zesa is trying to protect any particular customer, or 
group of customers, is not correct. It is essentially protecting client 
information privilege, similarly to what other businesses do in pursuance of 
professional business practice.”

“Zesa is dealing with all defaulters across the various customer categories 
in an even handed manner, with fairness and transparency,” said Gwasira.

“Zesa is very aware of the central role it plays in the economy and its 
recovery, and is very sensitive to the liquidity situation currently 
prevailing in the economy. This explains why the utility then afforded all 
customers categories the option of entering into payment plans to amortise 
the debts which had accrued.

“Some customers entered into these payment plans and are abiding to them, 
which is why some figures currently being highlighted in the media require 
qualification and should not be taken at face value.

“Power Disconnections are in both high and low density areas to all 
customers in a fair and transparent manner, and thus members of the public 
should not doubt our resolve to collect the debt and our even handedness,” 
added Gwasira in his response to the Daily News.

But he did not mention why Zesa only defended Mugabe yet there are dozens of 
defaulters among the country’s top officials. Gwasira could not be drawn 
into revealing details about payments on the First Family’s farms.

Among the top government officials owing Zesa hefty amounts of money, at a 
time the country is struggling to pay off an $80 million debt to Mozambique’s 
Hydro Cahora Bassa, are Mugabe’s closest aides such as Defence minister 
Emmerson Mnangagwa, minister of State in the President’s Office Didymus 
Mutasa, State Security minister Sydney Sekeramayi, Information and Publicity 
minister Webster Shamu, Indigenisation minister Kasukuwere, Higher Education 
minister Stan Mudenge, John Nkomo, Deputy Prime Minister Arthur Mutambara, 
Members of Parliament and provincial governors among others.

Outrage over top government ZESA defaulters

Outrage over top government ZESA defaulters

http://www.swradioafrica.com

By Alex Bell
19 March 2012

There is growing outrage in Zimbabwe after top government officials were 
exposed as defaulting on their power bills, with outstanding payments 
believed to be in the millions of dollars.

A month long investigation by the Daily News newspaper has listed the top 
ZESA offenders, with Robert Mugabe and his wife owing over US$300,000 to the 
electrics utility as of December 2011.

Also exposed with more than US$300,000 in outstanding bills were Manicaland 
Governor Chris Mushowe and CIO boss Happyton Bonyongwe. Others exposed 
include; Mugabe’s nephew Patrick Zhuwao, whose bill ran to more than 
US$54,000; Paddy Zhanda the ZANU PF Goromonzi North MP US$174,000; Women’s 
Affairs Minister and ZANU PF Mutoko South legislator Olivia Nyembesi Muchena 
who is US$44,000 in arrears.

The defaulters also included legislators from across the political divide in 
the coalition government, as well as judges, provincial governors, deputy 
ministers and permanent secretaries. Morgan Tsvangirai also recently 
admitted that he had paid about US$5,000 to the electricity provider, 
indicating that he too was defaulting on his payment. None of these 
officials have seen their electricity service cut off. (See list below).

ZESA over the weekend made a desperate appeal to defaulting customers to pay 
their bills, a day after jumping to Mugabe’s defense and insisting that the 
ZANU PF leader’s bill was up to date. The Zimbabwe Electricity Transmission 
and Distribution Company, a ZESA subsidiary, said in an ad that it required 
funds to refurbish power stations, and urged customers to “pay your 
electricity bills in time”.

The Daily News revelations have provoked outrage, with Prime Minister Morgan 
Tsvangirai’s MDC accusing the state utility of employing an “animal farm” 
approach to governance, where “some animals are more equal than others”. 
Daily News journalist Gift Phiri said the reaction has been “overwhelming,” 
particularly from the average consumer.

“We have had some allegations that we are deliberately trying to embarrass 
the President. But overwhelmingly people are angry,” Phiri explained.

ZESA has started a countrywide campaign to disconnect defaulting individuals 
and companies, further provoking already angry customers who have faced 
months of blackouts. Precious Shumba from the Harare Residents Trust told SW 
Radio Africa that normal residents are bearing the brunt of ZESA’s economic 
problems.

“People are being cut off for tiny bills and yet there is sometimes only two 
or three hours of power in Harare a day. ZESA should first be cutting off 
those officials whose bills run into the thousands. Not the average 
consumer,” Shumba said.

He added: “Zimbabweans deserve better.  These government officials are 
living large and they have forgotten their mandate to their citizens.”

The following were the major VIP ZESA defaulters as of December 31, 2011 as 
listed by the Daily News. This list is in no particular order.

1. Paddy Zhanda – $174,000
2. Saviour Kasukuwere – $100,602.22
3. Simbaneuta Mudarikwa – $12,000
4. Mable Chinomona – $5,904.98
5. Brig Gen Ambrose Mutinhiri – $13,000
6. Joel Biggie Matiza – $15,710
7. Olivia Muchena $44,000
8. President Mugabe and Wife’s farms $345,000
9. Aneas Chigwedere – $8,000
10. Oriah Kabayanjiri – $29,029
11. Marian Chombo – $175,085
12. Faber Chidarikire – $22,395
13. Joey Bimha – $7,967.76
14. Amos Midzi- $34,056.05
15. Munyaradzi Kajese – $23,483.45
16. Walter Chidakwa – $7,618.31
17. Patrick Zhuwao – $54,407.31
18. Bright Matonga – $11,607.12
19. Henry Muchena – $31,800.56
20. Munyaradzi Mangwana – $41,512.94
21. Kudakwashe Bhasikiti – $77,828.66
22. Shuvai Mahofa – $9,299.41
23. Stan Mudenge – $9,478.35
24. Samuel Mumbengegwi – $4,961
25. Titus Maluleke – $16,857.33
26. Chris Mushowe – $367,606.07
27. Happyton Bonyongwe $350,989.48
28. Tamsanqa Mahlangu $2,248.34
29. Kembo Mohadi + wife – $12,38.57
30. Hwange President’s Office – $8,863.37
31. Paul Gunda – $7,517.68
32. Kasukuwere & Co. – $6,733.89
33. Didymus Mutasa – $179,590.31
34. Enock Porusingazi – $186,525.46
35. Oppah Muchinguri – $53,699.69
36. Zanu PF Mash West Office – $2,792.45
37. John Nkomo – $1,402.28
38. Misheck Cheda – $5,959.78
39. Samuel Sipepa Nkomo – $ 2,238.60
40. Fletcher Dulini Ncube – $3,256.90
41. Giles Mutsekwa – $1,656.38

Industry wants Zesa board fired

Industry wants Zesa board fired

http://www.dailynews.co.zw

By Taurai Mangudhla, Business Writer
Sunday, 18 March 2012 12:20

HARARE - State-owned power utility Zesa Holdings should dissolve its board 
of directors for failing to collect $500 million tariff arrears from 
consumers, Confederation of Zimbabwe Industries president Joseph Kanyekanye 
said yesterday.

He told the Daily News on Sunday the directors’ failure to cause management 
to perform one of the company’s key mandate was a sign of incompetence, 
which threatened industry’s performance as a result of erratic power supply.

“The problem with Zesa Holdings is that some people were not paying their 
bills deliberately while some cannot afford the money, but we should never 
have a situation where we have people not paying for their consumption 
because we won’t go forward,” he said.

“Addressing debt collection is what needs to be done now so government 
should look at a situation where it dissolves the whole board and appoint 
people who have a no-nonsense approach because a company can’t have its 
debtors’ book continuing to balloon in the face of such liquidity 
challenges,” added Kanyekanye, who is also Allied Timbers chief executive.

In its defence, the state-owned power utility last month said it had failed 
to collect overdue bills because the charges were out of the reach of 
consumers because of liquidity challenges and a general poor remuneration 
across the job market.

While creating a pool of prepaying customers is a solution, Kanyekanye said, 
the government should allow private players to import their electricity 
directly from suppliers to diffuse the potential threat caused by the 
company’s debts to regional power producers.

“I have also said Zesa Holdings should be abolished because of its cost 
structure which goes up to $40 million a year. It’s an albatross to the 
consumer and we should do away with it and maintain productive units only.”

Industry and Commerce minister Welshman Ncube also said the problems at Zesa 
Holdings were a result of mismanagement.

“The problems lies with the leadership of Zesa Holdings, how does one 
accumulate a $50 000 bill and they are not switched off,” he said.

“If people don’t pay then they should be switched off before it gets to that 
amount,” added the minister.

“Sadly, industry is the worst casualty because load-shedding can be managed 
at domestic level through use of gas, solar and other energy alternatives, 
but for an industry to use diesel powered generators it will cost them a lot 
and make their business uncompetitive.”

President Robert Mugabe and his allies in both government and Zanu PF are 
top the list of defaulters.

Mugabe’s bill, which amounted to $350 000 as at December 31 last year, was 
less than that of Manicaland governor Chris Mushowe and Central Intelligence 
Organistion boss Happyton Bonyongwe who owe the power company $367 606,07 
and $350 989,48 respectively.

Standard Comment: Zesa denials shield electricity looters

Standard Comment: Zesa denials shield electricity looters

http://www.thestandard.co.zw/

Zesa Holdings has always maintained a veil of secrecy around the accounts of 
politicians who are not paying their astronomical bills.
Hiding behind client confidentiality, Zesa is trying to sweep under the 
carpet a brewing scandal involving the politicians.

But it’s now a matter of public record that ministers, permanent 
secretaries, MPs and military strongmen who have vast properties and 
multiple farms have not been paying their power bills which amount to 
millions of dollars. This is a scandal of the same magnitude as the War 
Victim’s Compensation Fund which the same Zanu PF clique looted.

In a cynical move, Zesa has descended heavily on poor people groaning under 
the weight of prolonged periods of power rationing; their bills hardly ever 
exceed US$200 per month but have had their homes disconnected. The same 
vigilance apparently doesn’t apply to the ruling elite, who have accrued 
bills of up to US$400 000 for a single household.

These unscrupulous politicians should be ashamed of themselves for 
plundering the power utility that is saddled with a huge power import debt.
The scandal at Zesa is only a tip of the iceberg. Other parastatals like the 
Zimbabwe National Water Authority are also owed millions of dollars by the 
same politicians and their cronies.

Recently it was reported that the GMB had been looted by the selfsame 
coterie of maniacs who see themselves as divinely ordained to rule this 
country, and therefore have the right to do as they please.

This systematic looting of parastatals is so deep-rooted in Zimbabwe that it 
is bleeding the economy.  It is in this light that denials by Zesa that no 
big people owe the struggling parastatals anything becomes untrue and 
therefore unhelpful.

The denials only show that the organisation is led by a management that is 
keen to ingratiate itself with the political leadership while not concerned 
about the wellbeing of the power utility itself and the common people who 
pay their bills under very difficult conditions.

Politicians are people’s servants and therefore must be held accountable to 
them. The press has done the right thing by bringing them to public 
scrutiny.

Mangoma dates Mozambique

Mangoma dates Mozambique

http://www.dailynews.co.zw/

By Xolisani Ncube, Staff Writer
Friday, 16 March 2012 12:43

HARARE - Energy and Power Development minister Elton Mangoma has been jolted 
into action as large parts of the country face darkness over Mozambique’s 
decision to switch off Zimbabwe due to an unpaid debt.

Mangoma told the Daily News yesterday he would be travelling to Mozambique 
to discuss the matter, although there was no hint that Zimbabwe had the 
money to pay up.

He said Maputo’s decision to cut electricity supply will “certainly” affect 
most parts of the country as Mozambique was the only country that was still 
supplying power to Zimbabwe.

He said the debt by power utility Zesa Holdings (Zesa) would be dealt with 
by forcing consumers to pay their arrears with the firm as well as use 
political means.

“We will continue disconnecting power to people so that they can pay their 
dues as well as deal with the issue politically. I will be travelling to 
Maputo soon so that we can find a solution,” said Mangoma.

Mangoma said the way in which Hydro Cahora Bassa (HCB) cut off the power had 
no legal binding as it was supposed to give the country its quarter 
allocation of the paid debt.

“They are supplying only 25 megawatts, a quantity which is being produced by 
our Harare power station,” said Mangoma.

Zesa owes Mozambique’s Hydro Cahora Bassa (HCB) over $75 million for power 
exported to Zimbabwe.

The country’s power supply authority, Zesa was importing between 100 and 185 
Megawatts from (HCB), but it will only be receiving 25 megawatts forthwith.

The Energy minister had earlier told the Daily News that government had made 
arrangements to clear the debt but HCB would have none of that.

So far, three other regional countries have already terminated their 
assistance to Harare due to its poor track record of debt settlement.

Before the fallout with other countries, Harare used to get 35 percent of 
its total distributed power from Zambia, Democratic Republic of Congo and 
South Africa.

The national power supply authority on the other hand is battling to recover 
over $400 million it is owed by customers hence it has resorted to power 
disconnections.

The country requires 3500 megawatts but it could only supply 1400 megawatts, 
a feat which is likely to worsen the current crisis.

Mozambique denies cutting Zimbabwe power over debts

 

Mozambique denies cutting Zimbabwe power over debts



(AFP) – 6 hours ago

HARARE — Mozambique's Cahora Bassa dam on Thursday denied cutting power to 
Zimbabwe, which had claimed the state-owned company had pulled the plug over 
unpaid bills totalling around $75 million.

"Hydro Cahora Bassa switched off supplies to Zimbabwe on Thursday or Friday 
last week over the money owed which is around $75 million or $76 million," 
Energy and Power Development Minister Elton Mangoma told AFP.

"We are now switching off defaulters as part of efforts to raise the money," 
he said.

But the Cahora Bassa dam, which supplies nearly a fifth of the power it 
produces to Zimbabwe, said this was not the case.

"We would like to inform you that we have not cut electricity to Zimbabwe. 
That information is misinformed," Rosaque Guale, a board member of the 
state-owned Cahora Bassa Hydropower Company told AFP.

Several suburbs of the capital Harare have gone for days without 
electricity, while other places suffer up to 10 hours of power cuts, as the 
utility Zimbabwe Electricity Supply Authority (ZESA) comes under pressure to 
save power.

Zimbabwe needs 2,200 megawatts of electricity at peak but generates just 
1,300 megawatts and imports the remainder, including 100 to 185 megawatts 
from Hydro Cahora Bassa.

The dam produces 2,075 megawatts of energy a year. South Africa buys 65 
percent, while Zimbabwe gets a 19-percent share.

Last month, Mangoma warned a parliamentary committee that Zimbabwe risked 
being cut off if it failed to settle its debt with Hydro.

He said ZESA had accumulated almost a billion dollars in unpaid electricity 
imports, unserviced loans and outstanding contributions to a joint power 
project with neighbouring Zambia.

The firm also plans to introduce pre-paid meters to improve its revenue 
collection.

Last year ZESA announced it would hand out more than 5.5 million 
power-saving fluorescent light bulbs to households across the country to 
curb consumption.

 

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