Zesa debt write-off looms

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LOCAL Government minister Ignatius Chombo yesterday implored national power utility Zesa and the Zinwa to write off individual consumers’ utility debts in line with Zanu PF policies.

LOCAL Government minister Ignatius Chombo yesterday implored national power utility Zesa and the Zimbabwe National Water Authority (Zinwa) to write off individual consumers’ utility debts in line with Zanu PF policies.

STAFF REPORTERS

Chombo said there was no logic in Zesa and Zinwa continuing to pursue the debts, saying it was Zanu PF’s belief that people were being disadvantaged.

“That’s the Zanu PF thinking that Zesa and Zinwa should do the same on debts,” he said.

“How can you recover a seven-year-old debt? A debt was carried over, but what happened to the money that was in the banks before the adoption of the multi-currency regime?

“(Finance minister Tendai) Biti took two years to pay farmers and in such cases, where do you think the people get the money?”

Commercial and household customers owe Zesa in excess of $700 million in unpaid bills.

Last month, Chombo ordered local authorities to write off all outstanding residential bills, in a move that was widely viewed as a Zanu PF vote-buying gimmick.

Although Chombo could not shed light on what would happen to those who were fully paid up, impeccable government sources said councils were considering extending discounts to paid up consumers. “I see people getting discounts as a way of appreciating them,” a source said.

Meanwhile, The Zimbabwe Urban Councils Workers’ Union (Zucwu) has indicated that it will seek audience with Chombo to press him to reverse his decision on debt cancellations.

Critics say the cancellation of debts will cripple local authorities and this will negatively affect service delivery.

Moses Mahlangu, Zucwu secretary-general, said the association would be forced to approach Chombo. “Our members are against the directive, but we hear that two (local authorities), Harare and Masvingo, are in the process of implementing the directive,” he said.

“But we feel the directive is not fair on councils, which are battling financially. “We have said the Chombo directive is illegal and if he pushes ahead, we will be left with no choice, but to approach him on the matter.” He said past directives from Chombo had been successfully resisted. “A similar directive by the same ministry to the effect that the ratio between salaries and service delivery of each urban council should be 30-70, (did not succeed),” he said.

“The courts have rubbished this directive as militating against collective bargaining and therefore, the Labour Act.”

According to their estimates, Mahlangu said Harare, Bulawayo, Mutare and Kwekwe are collectively owed $529,5 million. “Of the total debt owed local authorities, 80% of the arrears are owed by government,” he said.

“It is unheard of that a debtor writes off the debt he owes the creditor. It is not surprising that the majority have collapsed.” Mahlangu said the “minister is strongly warned of a protracted legal battle over the so-called write-off of the bills”.