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THE Zimbabwe Electricity Transmission and Distribution Company has been dragged to the High Court by Rusape Town Council which is seeking an order to recover $1, 2 million owed by the power utility in unpaid unit tax, levies, way leave and other charges.
According to summons lodged with the High Court under Case Number HC829/15, on January 29, 2015, the debt of $1, 2m was accrued in 2014 and 2015. Rusape-based law firm Chiwanza and Partners Legal Practitioners is pursuing the matter.
“The plaintiff’s claim is for the payment of US$1 203 930 being charges including rates, levies, unit tax, way leave charges and other charges,” reads part of the summons in which the council is also seeking interest a tempore morae from the date of summons to date of full and final payment and costs of suit.
“The defendant (ZETDC) has accrued a debt in the sum of $1 203 930 for the year 2014 and 2015, which amount is due and payable to the plaintiff (RTC) by the defendant. The amount owed by the defendant is for rates, unit tax, levies, way leave charges and other charges,” argues Chiwanza and Partners Legal Practitioners. ZETDC, through its lawyers, Dube, Manikai and Hwacha disputed the claims, arguing that both RTC and ZETDC were Government arms, and as such the power utility was not obliged to pay a fellow Government body.
“The plaintiff and the defendant are Government agencies serving the people and on behalf of the Government. The plaintiff is an urban council serving people living within its jurisdiction for and on behalf of government. On the other hand, the defendant is indirectly owned 100 percent by Government and transmits and distributes electricity for and on behalf of Government to the people of Zimbabwe. One arm of Government cannot sue the other arm of Government. Therefore, the plaintiff’s claim should fall on this basis alone,” argued ZEDTC lawyers.
“The defendant will call Abel Nyanganu Gurupira, an engineering manager, who will lead evidence that, in order to discharge its mandate, the defendant has various electricity transmission lines that cuts across the length and breadth of the country.
“Some of the lines and substations are located in the areas that fall under the jurisdiction of the plaintiff . . . the defendant (will call) the distribution service manager Siso Bukhosi, who will state that the defendant does not own the land through which its transmission lines pass through. These charges are unlawful and unsustainable and constitute a threat to its ability to service the country.”
ZEDTC, which according to the court documents, which The Manica Post has in possession, has been religiously paying council its dues, argued that it was not lawful for RTC to charge it unit tax, rates, levies, lee way charges and other charges.
“The defendant denies liability to the plaintiff in the sum of $1 203 930 and put plaintiff to strict proof thereof. It is unlawful for the plaintiff to charge the defendant unit tax, rates, levies, way leave charges and other charges.
“It is unlawful for the plaintiff to charge these amounts, and even if plaintiff was allowed, which is not being conceded, the amount is disputed. In any event, there is no service provided by the plaintiff to the defendant,” argues ZEDTC.
The matter is still pending before the court.
Online Reporter