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Sunday, November 29, 2020

ZESCO denies owing Maamba over 300 million dollars

Headlines ZESCO denies owing Maamba over 300 million dollars

State power utility ZESCO says it categorically denies owing over US $300 million to Maamba Coilleries for unpaid electricity.

Zesco Acting Managing Director Wester Musonda said whilst it would be inappropriate to comment on confidential matters over the arbitration proceedings against Maaamba, in view of the news reports, Zesco confirms that there is a dispute in relation to the excessive tariffs charged by Maaamba.

Mr Musonda said Zesco had hoped to resolve the dispute through constructive good faith negotiations.

He said Zesco shall vigorously defend any proceedings brought against it and categorically denies that it owes the amounts referenced in the said report.

On Tuesday, Maamba revealed that Zesco limited owes it US$350 million in power supply.

Maamba Collieries Limited Chief Executive Officer Rear Shankar says Zesco has not been able to pay the debt, making it difficult for the company to settle about US$100 million it owes in terms of loans.

Mr. Shankar explained that Maamba Collieries pays US$50 million towards settling its loans every six months, but that it has failed to pay back this year due to the failure by Zesco to pay what it owes the company.

Meanwhile Maamba Collieries Limited Head of Corporate Affairs, Commodore Svduir told Journalists in Maamba that despite Zesco increasing electricity tariffs several times, it has not improved on its poor culture of paying the company.

Maamba Collieries Limited contributes about 15-20 percent of Zambia’s energy demands.

24 COMMENTS

  1. Ba ZESCO Why get the electricity in the first place if the tariff was excessive if it was not to keep up appearances with to cover deficiencies in your waning company? Pay the debt you owe, you just can’t muscle into people’s or other business’s affairs like your bosses the PF does. Pay or be liquidated simple.

    20
  2. What else would you expect from a GRZ of crooks lead by a fraud convict ????

    Let the treatment of mamba be an example to other investors who are financing anything under lungu

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  3. ‘Zesco confirms that there is a dispute in relation to the excessive tariffs charged by Maaamba.’

    ‘Commodore Svduir told Journalists in Maamba that despite Zesco increasing electricity tariffs several times, it has not improved on its poor culture of paying the company.’
    THE MANAGING DIRECTOR,I HOPE IS EDUCATED IN THE FINANCIAL WORLD.
    If so, talking as he does in the above quoted words-is a betrayal of the profession.
    Zambia is fast becoming like one country to it’s immediate north…where no regard to the law is the norm.

  4. Ba Zesco senior management and board of directors: I want to ask u a question. U sit in these board meetings and u among other things review financial reports which include reports on creditors. Were u not seeing this figure from Maamba Colliries? Secondly ba MD for Zesco u do have accounts dept and department for engineers; were u not reconciling this account and agreeing on balance on monthly basis? Surely as a major supplier, this account was handled or must have been handled by senior personnel. Is it a case of having political cadres all the way from board members to the most junior person? The President should fire the board and senior Zesco mgt team. They have excessively been too careless. These are chaps interested in allowances and big cars only.

    13
  5. I guess after years/months of unproductive discussions or follow ups with Zesco, Maamba was left with no choice but to drag zesco to court…Now, as is the culture of the PF government to punish dissenting/independent views, don’t be surprised if PF’s starts cooking up or sponsoring fake charges/accusations against Maamba’s leadership in oder to “fix them”.

  6. Let Maamba Collieries also reveal their tarriff rate to ZESCO. It seems Maamba Collieries wants to use ZESCO as their milk cow to pay their creditors.

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  7. Ba Maamba Collieries are just seeing a chance to make quick bucks here cos ZESCO’s costing is suspect. Just a logical audit will prove it isnt possible for ZESCO to owe that much from 15 percent supply

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  8. Why do these cadres take us for fools? Surely there must have been properly signed and documented paperwork in the exchange of such a huge financial transaction between the two power companies. Maamba please produce those documents and stop fooling us

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  9. No wonder after paying k1710 cash for connection 2yrs down the lane we are still not connected in samfya,and wen u go to their office they say govt has directed them only to consider those under REA since Yama donna program.
    Careful ba pf coz Zesco tavota but we the pipo do.

  10. PF controlled institutions live in denial times.

    Cry louder there is God above who sees and watches and has the wrath in his hand for the PF government.

    PF must go!

  11. That is the problem of selling comapnies to foreigners. Before we were born Maamba Coilleries existed and was operating. You tell me no Zambians could run this company profitably? Someone is sick in the head.
    It is a well known fact that ZESCO money is abused by the current Zambian government. Thiis culture started with Chiluba. What we are seeing and hearing about ZESCO is exactly what is going on at National Pension Scheme Authority (NAPSA), abuse of resources.

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  12. When UPND comes to power ,the first thing is to chase away all the cadres employed by pf and employ professionals to run the utility.The company seriously need restructuring to suit the demands of the growing demands.
    Ba mwankole ,nchito nikudya chabe , ku iba and forget about paying debts.

  13. This Zesco, they don’t want to pay Maamba, just like KCM does not want to pay CEC. Just living a life of short cuts

  14. A few months ago, Zesco was importing power from a ship docked on the shores of Mozambique at a eye watering amount, now they cannot pay a local company! What a bunch of bellends!

  15. The way forward to bring down costs and reduce disputes is to implement a competitive tendering and bidding programme for Zesco IPP procurement programme for power The IPP can easily pass on excesses to Zesco balance sheet and eat into its Finances Its common knowledge that most power plants are being phased off globally as cost effective generation of power is added to countries generation Its actually a transition and addition happening at the same time

    Lets support Zesco and webo that is being progressive and forward looking Zambains The issue could have been at those EPC and tariff structures that made the ornerous LCOE of power to Zesco

    Gone back…

  16. Problem is zesco is cash cow for the PF. By elections come then they all decend on zesco and collect money for campaigns and bribes forgetting zesco also has to pay somebody else. Now this is the situation we are in.

  17. I feel like hiding. Can you imagine top managers arguing over a debt in the 21st century. Arguing like its butter system. Nayo ni butter system ya oxygen with light where even a learnt accountant would struggle. Now it’s an electricity bill. The guys cant measure the watts they are selling and buying. Drama

  18. The problem is that they have politicised the company hence it’s failure to perform,the company is working thru directives by the ruling party….lol

  19. Maamba Coilleries was built at a cost of $800 million dollars through private investors in 2016, Zesco did not pay for this investment or use the Eurobond billions .
    now the can`t even pay a private investors. People complain about not many investors coming to Zambia to development the country outside mining.

    this is why ZESCO board and managers are just thefts where did they take the money when increased the tariffs !!?

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  20. ZESCO is confused and lost, first they sabotage their own customer CEC, who were paying them efficiently and a good profit, by by-passing them and directly dealing with KCM at a reduced price per unit, the same KCM that is a great risk to CEC business,…..confusion at its worst. Then they are complaining tariffs that they agreed with Maamba Power, otherwise they would not have been taking the power. Not only that, they are now disputing the owed amounts, totally lost. These are the times of PF confusion.

  21. ZESCO can deny all the want. With bond holders calling for transparency on government guarantees, the truth will soon come out.

    ZESCO owes Maamba as well as Tata over $180 million for Itezhi-Tezhi

Comments are closed.

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