Zesco owes ERB K107 million

...maybe ZESCO should be sued to pay, grilled PS suggested

PUBLIC Accounts Committee (PAC) was shocked yesterday after learning that Energy Regulation Board (ERB) has failed to collect outstanding license fees amounting to K107, 330, 758 it is owed by Zesco for the past three years.

According to the recently released Auditor General’s report, outstanding amounts in license fees owed to ERB increased to K109, 654, 366.

Zesco limited owes 98 percent of the total debt.

Appearing before the committee Energy permanent secretary Brigadier General Emeldah Chola suggested that if possible Energy Regulation Board (ERB) should consider suing Zesco limited for failure to pay license fee debt amounting to K107, 330, 758.

Gen. Chola, who is Zesco limited member of the board of directors, acknowledged that it has been a challenge to settle the debt for a long time now because the electricity utility firm was experiencing serious financial challenges.

But committee member Teddy Kasonso (UPND Solwezi West MP) described Gen. Chola’s explanation as unacceptable, adding that as member of the board of directors she should be the last person to talk about her firm (Zesco) being sued instead of finding a lasting solution.

And Senga Hill PF Member of Parliament Kapembwa Simbao said it was unacceptable that Zesco could be in such a situation when it had only connected less than 23 percent of rural households.

He wondered how Zesco would be able to connect the rest of unconnected homes in rural areas if it was failing to settle such debt.

“I am concerned with the increase of debt by Zesco… can PS tells us where the problem is? Why are you failing to tell Zesco to pay?” Mr Simbao asked.

In her response, Gen Chola promised that the situation would improve.

She said government through the ministry of Energy was currently carrying out some reforms because the institution had been facing serious financial challenges in the past.

And Committee chairperson (Muchinga MMD MP) Howard Kunda told Gen Chola that she was not doing her job properly because debt owed to ERB kept on increasing every year.

And Milenge PF Member of Parliament Mwansa Mbulakulima said ERB was as good as closed because it was failing to perform its basic functions.

He said responses given by Gen. Chola did not give him hope because it was unacceptable that ERB was failing to perform its basic functions such as monitoring non-payment of fuel levy by the oil marketing companies.