eBusiness Weekly
Business Writer
Government has resolved to go ahead with the re-bundling of the Zimbabwe Electricity Supply Authority (ZESA) and resolved to merge all the group’s units into a single integrated company.
Briefing journalists after Tuesday’s Cabinet meeting, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said Cabinet had approved the re-bundling, of Zesa with all companies amalgamated into a “single vertically integrated company.”
“Cabinet resolved to amend the Electricity Act (Chapter 13:19) in order to cater for the proposed changes in the structure of ZESA,” she said.
“It also resolved to engage a reputable human resources consultant to advise Government on the best structure for the re-bundled Zesa and as a consequence of this reform, that Powertel be hived-off from ZESA and be merged with Zarnet and Africom.”
Zesa has five companies namely Powertel Communications, Zimbabwe Electricity and Transmission Distribution Company (ZETDC), Zimbabwe Power Company (ZPC), Zesa Enterprises (Zent) and Zesa Holdings.
Government further set up the Rural Electrification Agency (REA) and the Zimbabwe Regulatory Authority (Zera).
The unbundling of the power utility is now blamed for exerting more costs on the company and the tariff, as all executives get huge salaries and perks such as top-of-the-range vehicles.
Apart from several chief executives, all of the companies under Zesa Holdings have separate departments such as marketing, human resources, accounts and public relations.
Zimbabwe National Chamber of Commerce (ZNCC) chief executive officer Mr Takunda Mugaga said the re-bundling of ZESA, for instance was long overdue.
Said Mr Mugaga: “Streamlining and setting up a vertical structure for ZESA will be the first step to restructuring it.
“All those subsidiaries had boards which was unnecessary and increased administration costs instead of maintenance.
“A leaner board should be set up by the Parliamentary Portfolio Committee on Energy not just the minister alone,” he said.
“It also resolved to engage a reputable human resources consultant to advise Government.”
