Zesa Threatens To Switch Off Kwekwe Over $100 Million Debt

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Zesa Threatens To Switch Off Kwekwe Over $100 Million Debt
Zesa Threatens To Switch Off Kwekwe Over $100 Million Debt

Africa-PressZimbabwe. By Staff Reporter – THE Zimbabwe Electricity Supply Authority (Zesa) has threatened to switch off Kwekwe City Council following the local authority’s failure to offset an estimated $111 million debt owed to the power utility.

Mayor Angeline Kasipo told MPs who form parliament’s Local Government committee that Kwekwe was in a tight spot after Zesa has threatened to cut off power supply over the ballooning debt.

Should Zesa proceed with the switch off, this will impact on its ability to pump water from its Water works.

“We are in a tight spot, as we are faced with a switch off from Zesa. Zesa recently threatened to switch us off over a $111 million debt,” Kasipo told parliamentarians.

In addition, Kwekwe is failing to employ or replace critical staff due to poor revenue collection.

The sorry financial situation within the local authority has been worsened by the Covid-19 outbreak.

“The collection efficiency is down due to Covid-19. Currently, we are only collecting 42% of the money billed, whilst according to statutes, we must 30% of our revenue collections. Therefore, we are unable to employ due to poor revenue,” she said.

Kwekwe is also supplying nearby Redcliff town with water.

Redcliff is failing to service its own water debt to Kwekwe which has ballooned to $45 million.

Added Kasipo, “We are currently supplying water to Redcliff. Unfortunately, they are not paying for the water which they are receiving.

“We are in a tight situation. However, we are aware that if we don’t give Redcliff water, residents there will surely suffer. Redcliff is currently owing us $45 million,” she said.

Government, institutions according to Kwekwe Finance Committee Chairperson Silas Mukaro, are owing Kwekwe $23 million.

“Government institutions are owing us $23 million and we need assistance to recover this money.

“Zisco is also owing us $16 million. Government must assist us to recover the Zisco debt. While Redcliff is also owing us $45 million. The whole amount we are being owed is $83 million. Such an amount is coming against a backdrop where we have debts with Zesa,” Mukaro said.

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