Gweru drags ZETDC to court

By Munyaradzi Musiiwa

Gweru City Council is demanding more than $84 million from Zimbabwe Electricity Transmission and Distribution Company (ZETDC) for way leavers erected by the power utility in the city which the local authority said were eating up space earmarked for development.

The local authority has since dragged ZETDC to court over the matter and is yet to be finalised.

Ironically, Gweru City Council owes ZETDC more than $26 million in unpaid electricity bills.

In a financial statement released by the local authority on its budget feedback to residents, Gweru City Council said it was now awaiting the court ruling on the ZETDC matter.

“The amount of $84 434 000 in respect of the way leavers raised against ZETDC has been excluded as the matter is still before the courts,” read the statement.

“ZETDC is one of the council’s top five creditors. ZETDC is owed $26 813 028, which constitutes 53 percent of the local authority’s debts. The bill for electricity ranged from a minimum of $293 635 in March 2018 to a maximum of $317 384 in August 2018. During the eight months (January to July), the total bill for electricity came to $2 440 451 against total payments of $540 812 for the same period. The minimum paid to ZETDC was $8 700 in July, yet consumption was $292 502 for the same month. The highest paid was $152 000 in June against a consumption of $314 045. Council is consuming electricity beyond what it can afford. To this end, ZETDC debt as at August 31 is now at $26 813 028.”

Gweru City Council is also grappling with a $50 million debt owed to Zimra, Zimdef, ZETDC and Local Authorities Pension Fund (LAPF).

The local authority is owed more than $62 million by its defaulting clients in unpaid rates and water bills.

“To this end, council owed $50 205 690 as at August 31 and the top five creditors are ZETDC owed $26 813 028, LAPF owed $12 553 167, Zimra is owed $5 463 349, Zimdef owed $285 640, leave pay provisions has $3 729 561 and other payables of $ 1 360 945,” read the statements. A ballooning debtors book increased from $55 548 650 as at December 31, 2017 to $62 852 380 as at August 31, 2018. Included in this are industries who are no longer paying their bills amounting to $4 543 537.”  The Herald