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Zesa sues firms over $2m debt

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The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has approached the High Court seeking to recover over $2 million from Unki Mine in Shurugwi and a Chinese firm Xin Yu Mining Corporation based in Gweru.

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has approached the High Court seeking to recover over $2 million from Unki Mine in Shurugwi and a Chinese firm Xin Yu Mining Corporation based in Gweru.

BY CHARLES LAITON

The power utility, which is represented by a Harare law firm, Chihambakwe, Mutizwa and Partners, filed summons against the two firms demanding $1 064 683,44 and $1 316 939,15 respectively.

Both firms have not yet entered their appearances to defend and the matters are still pending at the High Court.

In respect of Unki Mine, ZETDC said as at February 21, the mine had not settled its outstanding power bill despite written demand to do so.

“The defendant (Unki Mine) is indebted to the plaintiff (ZETDC) as at February 21, 2017 in the sum of $1 064 683,44 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 for account number 2310107,” ZETDC said.

“The defendant has failed, neglected or refused to pay the above sum/amount despite written demand and by reason of the said failure, neglect or refusal to pay the above sum/amount; the defendant is obliged to pay the said amount, with interest thereon, at the prescribed rate, which is currently 5% per annum.”

In a different but related matter, the power utility also issued summons against Xin Yu Mining Corporation citing breach of the parties’ contractual agreement.

“The defendant is indebted to the plaintiff as at February 21, 2017 in the sum of $1 316 939,15 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 for account number 2405138,” ZETDC said.