ZESA loses $8 trillion

HARARE - The troubled Zimbabwe Electricity Supply Authority (ZESA) had made an operational loss of over Z$8 trillion by October last year, the governor of the Reserve Bank Gideon Gono announced last week. ZESA is one of several mismanaged and corrupt parastatals that have been making huge losses for

years. Top managerial positions are usually occupied by friends or relatives of Zanu (PF)’s top echelons. For example, the chairman and CEO of ZESA is Sydney Gata, bother-in-law to President Robert Mugabe. The organisation has neglected to maintain its power generators at the giant Hwange thermal power station and the Kariba hydro power station, forcing Zimbabwe to import power from DRC, South Africa and Mozambique. ZESA now has outstanding foreign debts totalling US$330 million . Another parastatal, the National Oil Company of Zimbabwe (NOCZIM) made a loss of Z$1 trillion over the same period, largely because of complex and corrupt payment systems. For example, government departments and selected farmers (i.e. Zanu (PF) gravy-train occupants) pay Z$10,000 per litre for petrol, while the official price at the pump is Z$22,600, when available (which is hardly ever). Meanwhile, on the thriving parallel market fuel costs between Z$100,00 and Z$120,000 per litre. – Own correspondent

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