Tanesco gives Z’bar two weeks to pay up

Move comes just four days after President Magufuli said no defaulter should be spared if the company is to survive 

Dar es Salaam. The Zanzibar government and other electricity customers with unpaid debts were yesterday given two weeks to start paying up or be disconnected.

Dr Tito Mwinuka, the acting Tanzania Electric Supply Company (Tanesco) managing director, said the ultimatum was part of a new campaign to recover Sh275 billion owed to defaulters.

The Zanzibar government, through Zanzibar Electricity Corporation (Zeco) is the biggest debtor, owing Tanesco Sh127.8 billion.

Private companies and domestic users have racked up Sh94.9 billion in unpaid bills, while the Union government has yet to pay Sh52.5 billion.
“We will issue a notice in writing to all big defaulters, but since we can’t write to each and every defaulter, particularly domestic users, we will place this notice as paid-up advertisements in the media,” Dr Mwinuka said.

“After the expiry of the ultimatum, we will disconnect power supply to all defaulters, big and small, who will not have started to clear their debts.”

Tanesco issued the ultimatum just four days after President John Magufuli directed the public utility to disconnect all defaulters, including Zanzibar.

“Don’t be scared...you should cut supply to any institution which is not paying its bills. I want to tell the minister (of Energy and Minerals Sospeter Muhongo) that power should be disconnected even at State House. If I sleep in the dark, then the State House official who didn’t pay the bill will be the one to explain, not you. You have my assurance on this. Money to clear debts is usually allocated to our ministries but it is instead channelled elsewhere. I’m told the Revolutionary Government of Zanzibar has not paid Sh121 billion...just cut supply,” Dr Magufuli said in Mtwara last Sunday.

Following the directive, Zanzibar government officials told The Citizen that plans to pay Zanzibar’s debt were at an advanced stage.

Zanzibar Lands, Environment and Energy minister Salama Aboud Talib said on Monday that she had “fruitful” discussions with Prof Muhongo, and it was agreed that the energy permanent secretaries from the two sides of the Union come up with proposals on how Zanzibar would begin to settle the debt before March 31.

It was not clear whether the two governments would stick to this agreement since Tanesco’s ultimatum elapses on March 22.

President Magufuli last weekend told Tanesco not to allow itself to be held back by “politics”.

“You (Tanesco) are not politicians...you should stick to your professional obligations...disconnect all defaulters. I’ve said that regardless of whether it’s the State House, police, army or schools, no defaulter should be spared. This is the only way can we ensure that funds allocated to ministries for electricity are used as planned so that Tanesco can survive and deal with the problem of unreliable power. Tanesco is unable to improve services because of unpaid government debts,” he said.