Ten companies were placed under final liquidation in one day at the High Court in Harare last week according o the Movement for Democratic Change Shadow Minister for Energy and Power Development Morgen Komichi.
Komichi said in a statement today that the companies were: Intermedia Agencies, Valley Technologies, Gauntlet Security, Stephens Catering, Karina Textiles, Matetsi Water Lodge, DM Cartwright, Central African Shipping Agency, Durawall Company and Strand Multiprint.
The companies cited various economic constraints including the persistent power outages.
Zimbabwe is generating only 1 200 megawatts against a demand of 2 200 megawatts.
Hurungwe North legislator Reuben Marumahoko said last week three-quarters of the companies that had closed for Christmas had not re-opened up to now.
Komichi’s full statement:
Thursday, 20 February 2014
Press Statement by Senator Morgen Komichi, the MDC Alternative Minister for Energy and Power Development, Harvest House, Harare
Good afternoon, ladies and gentlemen!!!
We are meeting today when we are facing a serious national crisis of electricity shortages as the country’s five power stations are failing to meet demand. Zimbabwe has five power stations, which are only generating an average of 1200MW against a peak demand of 2200MW.
These persistent power cuts being experienced in the country are totally unacceptable as they are seriously affecting both the people’s day to day lives and the growth of the economy.
The MDC notes with grave concern that the daily power cuts in our homes, schools, industry, mining and agriculture sectors have resulted in most companies scaling down operations or closing down, resulting in thousands of employees being retrenched every week and this is causing a serious economic challenge.
Last week, a high record of 10 companies where placed under final liquidation in a single day at the High Court in Harare as the companies cited various economic constraints including the persistent power outages.
The liquidated companies are; Intermedia Agencies, Valley Technologies, Gauntlet Security, Stephens Catering, Karina Textiles, Matetsi Water Lodge, DM Cartwright, Central African Shipping Agency, Durawall Company and Strand Multiprint.
From these sad developments, it is clear that Zanu PF has created a crisis of expectation as the party is failing to implement what it promised the electorate in the last elections.
Zanu PF through its ZimAsset economic blueprint has shown it does not have the clue and the capacity to increase the country’s power generation and alleviate the country’s profound economy crisis.
The Zanu PF Minister of Energy, Dzikimai Mavhaire has failed dismally to mitigate the current challenges besetting the efficient supply of power.
The feasible short, medium and long term measures to rescue the energy sector that were put in place by the then inclusive government in which President Tsvangirai was the Prime Minister and head of government have been discarded by Mavhaire in favour of succession and power battles in his party.
On the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), the MDC condemns the unnecessary massive power tariff increases recently proposed which will result in the doubling of power tariffs and when consumers are being short changed and receiving electricity supplies of only less than 50 percent. The avoidable increases will further burden the struggling economy and the suffering ordinary people.
In fact, ZEDTC should not have implemented at the end of last year, the populist directive of Zanu PF to right off millions of dollars in electricity bills owed to it by the consumers as it resulted in ZESA becoming insolvent.
The failure by the parastatal to get financial support from Zanu PF has further resulted in its abandoning the upgrading the Hwange Power Station.
The abandoned ZESA restructuring plan, which was initiated by the then MDC Minister of Energy, was meant to create an efficient structure leading to a vibrant electricity market that would attract investors and the efficient use of power.
Turning to mandatory blending for all vehicles, Zanu PF has revealed serious policy inconsistencies thus exposing its bellicose approach to indigenisation.
The policy entrenches a monopoly in favour of Green Fuels where all fuel operators are forced to procure from one source while the blending ratios are not in favour of the motorists and violate the people’s fundamental rights to freedom of choice. Because of greed and corruption we are seeing a government that breaks its own laws in order to protect the few.
The directive has since been challenged at the Constitutional Court questioning the rationality on the 20 percent mandatory blending including the compatibility of the fuel on vehicles by next month – March.
On the issue of corruption and in light of the high levels of dishonesty and obscene salaries that have been exposed in State enterprises, the alternative government demands an urgent audit in all companies that fall under the Ministry of Energy and Power Development.
The enterprises include; ZESA Holdings, Zimbabwe Power Company, ZETDC, ZESA Enterprises and Powertel. Senior executives that have since been implicated in fraud and of abusing State assets should be arrested and prosecuted immediately.
As the alternative government, our position is that the country’s economy will not recover until we have resolved the issue of reliable power supplies at the lowest cost possible. The high risk profile attracting Zimbabwe due to the stolen vote of July 31, 2013, will not be attracting any new energy players and this has resulted in the drastic fall of the economy and the suffering of the people.
As the alternative government in Zimbabwe, the party is to ensure efficient, clean, affordable energy for all Zimbabweans. Energy pricing must be both cost-reflective and competitive in order to balance the need for investment viability and consumer affordability.
The goal of the next MDC government’s energy policy is to provide a framework for exploitation, distribution and utilisation of energy resources in fulfilment of broad policy objectives and principles.