Published: 2016 August 03 03:16:15 (6277 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

You might also want to read this

• Zesa Hikes Debt Recovery Rate For Prepaid Consumers
• ZESA Worker Caught Receiving Bribe To Fix Electric Fault
• ZESA Threatens Load-Shedding If Tariffs Not Increased
• Zesa Sinks Deep In New Tender Scandal
• Power Trade Pacts Likely To Balance Electricity Supply
• 24 Independent Power Companies To Produce Electricity
• Chivayo Might Lose Millions If Deal Flops
• Minister In Trouble: ZPC Reveal Undenge's Hand In Wickinell Shady Deal
• Wickinell Shady Payout Brings Trouble For ZPC Bigwigs

Comment as Anonymous | Comment With Facebook Submit

There are no comments.

Big Reads

© Copyright 2024 Zim Metro is not responsible for the content of external sites | Contact Us: editor@zimmetro.net | RSS Feeds | Sitemap