Reason Why ZESA Wants To Hike Tariffs EXPOSED

Reason Why ZESA Wants To Hike Tariffs EXPOSED
Published: 2016 August 03 03:16:15 (2681 Views)


ZESA Holdings has been accused of placing a bid to raise electricity tariffs so as to cover up cash deficits affecting the company after illicit corrupt multi-million deals are bleeding the company.

The power utility, left agonising after its proposal for a 14,69 percent increase in the power tariff shot down by the regulator, this week said tight fiscal latitude will put the group under strain.

Zesa continues to incur huge costs for the storage of equipment acquired from an Indian firm under a shady deal that is subject to an ongoing probe.

The transformer manufacturing equipment was supplied to ZENT Enterprises, a unit of Zesa, which specialises in the manufacturing of transformers for domestic use and for export.

The equipment was part of a $16 million consignment delivered to ZENT without orders being raised for it or specifications to suit project needs.

The power utility, left agonising after its proposal for a 14,69 percent increase in the power tariff shot down by the regulator, this week said tight fiscal latitude will put the group under strain.

But Zesa continues to doll out huge amounts of money every year in demurrage fees for the millions of dollars worth of idle equipment whose fate remains a subject of conjecture.

A source said the Ministry of Energy and Power Development recently demanded details of all procurement transactions since 2005, which also covers the deal with PME of India.

It is understood that while ZESA’s transmission and distribution unit, ZETDC, would buy the equipment, it either has no capacity to buy the equipment or cannot find use for the equipment. While the issue has not been finalized, sources said the manner in which the deal was executed showed blatant disregard of rules and corrupt tendency involving senior executives.

The auditor general’s report suggested that possible connivance between officials from the two firms benefited in the multi-million dollar.

The officials allegedly took advantage of a technology transfer agreement between ZENT and PME, which was supposed to run up to 2010, but was extended by a further five years.

Chiri pointed out then that there were a number of apparently irregular features to the deal, which include supply of equipment outside of amounts raised in specific orders.

While ZENT received equipment not ordered for and paying demurrage costs for their storage, PME would also send official to Zimbabwe, with the power utility meeting their travel costs.




- Herald
 0

You May Like These Videos

Comments

| Comment With Facebook Submit

There are no comments.

Big Reads

Pictures show fuel tankers offloading fuel in the bush

by Moses Zhou | 2019 August 13 07:53:37

Schoolgirl drops out after continuous 'sexual abuse' by teacher

by Staff Reporter | 2019 August 13 07:42:33

Bulawayo prostitutes dollarise

by Staff Reporter | 2018 December 01 00:43:29

DRAMA as mourners fight over deceased loan sharks' loot

by B-Metro | 2018 November 30 23:35:19

'Tsvangirai's ex' on police wanted list

by B-Metro | 2018 October 19 12:39:23

Dumped man glasses wife's face with broken beer bottle

by Staff Writer | 2018 October 19 12:32:05

Zimbabwe prostitutes hike prices

by Zimbabwe prostitutes hike prices | 2018 October 18 17:13:08

Pastor shocks female congregant with new panties

by Metro Writer | 2017 March 28 10:50:44

Harare man steals 10kg mealie meal from neighbour

by Court Reporter | 2017 March 28 07:56:29

Four company directors die in Vumba Mountain plane crash

by Staff Writer | 2017 March 28 07:38:59

Man with 'deformed' body bashes parents

by Staff Writer | 2017 March 24 09:48:46

Mugabe Knows Nothing About The Zimbabwe Constitution: MP

by Staff Reporter | 2016 October 01 08:12:02

Troubled Harare Giants Dynamos Falls Into Another Deep Crisis

by Own Correspondent | 2016 October 01 07:49:17

Shock As Local Bank Denies 'Rich' Mugabe's Son Heifty Credit

by Own Correspondent | 2016 September 30 19:14:54

Mugabe "Home Coming" And "Thank You" Rally On Cards

by Own Correspondent | 2016 September 23 06:48:24

Prof Moyo Was Dumped By Western Embassies, Claims Mutsvangwa

by Staff Reporter | 2016 September 22 10:08:07

Prof Jonathan Moyo In Fresh Beef With War Vets

by Own Correspondent | 2016 September 22 07:48:10

You Are Too Old To Lead, Aging Zim President Mugabe Told

by Own Correspondent | 2016 September 22 07:19:25

Younger Lover Beats Up Sugar Mama For Cheating

by Own Correspondent | 2016 September 20 03:21:43

Anti-Corruption Commission Loses Property In Failed Probe

by Own Correspondent | 2016 September 20 03:18:19

Mutsvangwa's Son Caught Up In Rape Case

by Own Correspondent | 2016 September 20 01:24:00

REMAINING PSL FIXTURES: ONLY 7 WEEKS LEFT

by Sports Correspondent | 2016 September 20 01:21:33

Victims Involved In Horror Crash Named

by Own Correspondent | 2016 September 20 01:16:09

Man Kills Uncle For Taking Him To Prophet

by Own Correspondent | 2016 September 20 01:11:08

Mphoko Threatens Zimra Over Irregular Taxes

by Own Correspondent | 2016 September 20 01:07:44

China Pours $46m On New Parliament Construction

by Own Correspondent | 2016 September 20 01:05:11

SHOCKING:14 Year Old HIV-Positive Boy Rapes 7 Pupils

by Own Correspondent | 2016 September 20 00:04:55

Tajamuka Slams Zimpapers, Fumes Over

by Own Correspondent | 2016 September 19 11:56:42

Mthwakazi Activists Torment Mujuru

by News Editor | 2016 September 19 10:52:58

We Did Not Fire Live Bullets: Police

by Staff Reporter | 2016 September 19 08:09:20

Ruling On 58 Protesters Expected Today 



by Court Reporter | 2016 September 19 08:10:40

6 Zanu PF Youths Nabbed For Assaulting Cops

by Court Reporter | 2016 September 19 08:11:50

Mutare Con-artist Cracks Zanu PF

by Own Correspondent | 2016 September 19 08:13:32

MSU Student Caught Peddling Drugs Tor Tuition Fees

by Own Correspondent | 2016 September 19 05:29:18

ZIMRA Dishes Out Rewards To Faithful Tax Payers

by Own Correspondent | 2016 September 19 05:24:19

Headmaster ‘Steals’ $17 000 From School's Fees

by Own Correspondent | 2016 September 19 05:21:24

Mujuru Party Fails To Pay $15 000 For Printed T-shirts

by Own Correspondent | 2016 September 19 05:14:37