The Industrial Development Corporation (IDC) has directed the ZESCO Board of Directors to suspend employment of new staff and freeze all vacant positions unless in exceptional circumstances.
IDC Chairperson of the Finance Committee David Kombe has directed the Board and management of ZESCO to re-examine the utility company’s strategies, operations and structures, in order to identify and implement measures to turn it around.
Mr. Kombe says the Board needs to take bold and meaningful measures that will transform the company into a viable enterprise.
Speaking during ZESCO’s Annual General Meeting, Mr. Kombe emphasised that ZESCO’s situation requires urgent measures to transform the company.
He further noted that restructuring of the company by streamlining operations and reducing on current workforce includes abolishing or merging of functions or departments; review of all planned adjustments in salaries which should be linked directly to both individual and overall performance of the company.
Mr. Kombe noted that the IDC expects a comprehensive review and restructuring of conditions of service particularly for those in management such as travel on company business, communication, provision of personal to holder vehicles, access to company produces and services and any other such conditions that can be abolished or repackaged.
The IDC representatives who also included the Board Chairperson of the Audit and Risk Committee Isaac Ngoma expressed concern at the pace at which ZESCO is implementing Renewable Energy projects.
He said it is prudent for ZESCO to take the lead in facilitating power generation through renewable energy sources in light of the over 300 Mega Watts power deficit in the country.
And ZESCO Board Chairperson, Mbita Chitala noted that the utility company is faced with various problems including refinancing of its debt owed to Independent Power Producers and settlement of arrears to suppliers.
Dr. Chitala revealed that ZESCO is in the process of raising a 500-million-dollar bond to settle part of the debt.
This is contained in a statement issued to ZNBC news by IDC Public Relations Manager Namakau Mukelabai.