BUSINESS

Hwange Council and ZPC in ZWL$10 Million Debt Brawl

Hwange Power Company
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STAFF WRITER

STRUGGLING Hwange town is reportedly in a fierce legal brawl with the Zimbabwe Power Company (ZPC) over ZWL$10 million (about US$123 000) in unpaid rates, with the local authority saying this has   crippled its service delivery.

The Zambezi Times understands that the feud between the two institutions has spilled to the courts.

While lawyers involved in the matter were coy, this publication gathered that ZPC was recently served with summons, after the Hwange Local Board (HLB) escalated issues over the debt.

Trusted sources who spoke to this publication on condition of anonymity said HLB was in dire financial straits and this was exacerbated by the power company’s refusal to service debts.

“ZPC is the biggest rate payer to council as it services the power company’s suburbs of Chibondo and Baobab through maintenance of roads and sewer as well as lighting. As it is, the council has taken ZPC to court,”said one source.

 “Unfortunately, the development has affected not only service delivery but hundreds of the local authority’s work force who have gone for two months without salaries,” added the source.

HLB public relations officer, Dumisani Nsingo, confirmed the development.

“I can confirm ZPC owes us but there are not the only ones. We are owed by a number of institutions though the amounts are very low than what it (ZPC) owes us. We are also owed by residents as well, so it will be very unfortunate to mention ZPC only, ” said Nsingo.

“However, the anomaly of the delay in payment of salaries is being addressed,” Nsingo added.

 While Prisca Utete, the Zimbabwe Electricity Supply Authority (ZESA) spokesperson played hard ball and demanded written questions.

 However, by the time of going to press, she had not responded to questions emailed to her.

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