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Govt Approves Re-merging Of Subsidiaries To Form "One" Zesa In Order To Cut Costs

5 years agoWed, 29 Aug 2018 07:27:03 GMT
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Govt Approves Re-merging Of Subsidiaries To Form "One" Zesa In Order To Cut Costs

Permanent Secretary in the Ministry of Energy and Power Development, Partson Mbiriri has said that the cabinet has approved a decision to remerge all Zesa related subsidiaries to reform a single company. The government has cited the high costs associated with running separate companies after Zesa was unbundled in 1997 and 2006. In a discussion at the Harare Agricultural Show on Tuesday, Mbiriri said,

Zesa used to be one company. But we created eight entities out of the one company and each one has a chief executive (officer), if not several chiefs; and each one has a vehicle which matches the title. The costs are too high. Cabinet has decided we shall revert to one Zesa. We will have a few chiefs (and) the costs will come down. It will not be a popular decision (with the management).

For Zesa Holdings and its four subsidiaries, we are in the process of amalgamating them. That will have a telling impact on the tariff. I am not saying the tariff will come down, but we might hold on to where we are as we will have a leaner administration.

More: Herald

 

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