The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has filed a lawsuit against Municipality of Kadoma and two firms seeking to recover $15 million in unpaid electricity charges.
BY CHARLES LAITON
The power utility issued summons against Municipality of Kadoma demanding $8 771 827 after the council allegedly failed to service the debt.
“The defendant (Municipality of Kadoma) is indebted/liable to the plaintiff (ZETDC) as of February 28, 2017 in the sum of $8 771 827 being charges in respect of power/electricity supplied by plaintiff to the defendant at the latter’s special request and instance in terms of the running electricity supply contract between the two,” the power company said in its declaration.
“By reason of the said failure, neglect or refusal to pay the above sum/amount, the defendant is obliged to pay the same with interest thereon at the prescribed rate which is currently 5% per annum.”
In another related matter, ZETDC also filed summons against a Gweru-based Chinese firm, Jin An Corporation seeking payment of $4 280 687 for the power supplied to the firm until February 21 this year.
“The defendant (Jin An Corporation) is indebted to the plaintiff (ZETDC) as at February 21, 2017, in the sum of $4 280 687,58, being charges in respect of power/electricity supplied by the plaintiff to the defendant at the latter’s special request and instance.
The power utility firm also filed summons against Billy Rautenbach’s firm GreenFuel demanding payment of almost $3 million for the power supplied to the businessman’s Chisumbanje plant in Chiredzi.
In its summons, ZETDC said sometime in 2012, it entered into a power purchase agreement with GreenFuel in terms of which it supplied power to Chisumbanje plant since 2013.
“Since the 2013 amendment the agreement subsists, with the plaintiff continuously supplying defendant with electricity and the latter consuming same. Defendant has not tendered payments for such electricity and is now indebted to plaintiff in the sum of $2 940 298,” ZETDC said.
According to the court documents, all the cited respondents have not yet entered appearance to defend.