'Zesa owes Harare $3m'

HARARE - Zesa Holdings (Zesa) owes Harare City Council (HCC) $3 million for rentals accrued over a period of five years.

According to minutes of the finance and development committee, switching centres which were on council land have been occupied by Zesa free of charge.

“The director of works was now requesting authority to lease the sites in retrospect with effect from September 1, 2009. He further advised that so far $3 million had been billed up to end of June 2014,” reads part of the minutes.

The minutes further state that talks with the power utility were underway with Zesa committing to pay their debt.

Substations and switching centres affected are; Retreat townships, Carrick Creagh, Mbare, Glaudina, Glen Lorne and Hatfield to name a few.

It was resolved in the minutes that the substation and switching centre sites would be leased to Zesa with effect from September 2009 for a 10-year period.

HCC management accounts report for the period January 1 to May 31, 2014 presented to the committee by acting finance director Tendai Kwenda showed that revenue collection rates were at 55 percent.

Kwenda also presented a management report which had a summary of creditors to the tune of $212,3 million and debtors amounting to $263,9 million.

He said there was low revenue collection because nothing had been received from the Zimbabwe National Road Administration (Zinara) among other factors. “Zimra had agreed to write
off Value Added Tax on City’s current outstanding payment and government had confirmed its commitment to set off arrears on due payments to the city,” he said.

The finance committee then tasked Kwenda to investigate the alleged use of fake receipts at the city’s markets and put strategies in place to avoid revenue leakages.

It was also resolved to put mechanisms that would motivate residents to pay their bills in time and not sabotage payment.

Comments (1)

Why starting it now and back dating to 2009? So zesa will have to increase tarrifs to meet this .

Vhaire - 18 August 2014

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