THE Zimbabwe Electricity Supply Authority (Zesa) is insolvent with its liabilities outstripping its assets by over US$92 million, a report by the Auditor General Mrs Mildred Chiri reveals.

The report was tabled in Parliament last week.
“I draw your attention to the fact that the company’s current liabilities exceed its current assets by US$92 118 178, this indicates that a material uncertainty exists that may cast significant doubt on the company’s ability to continue operating as a going concern,” Mrs Chiri said.

In 2017 the company’s liabilities exceeded its assets by US$84 167 798.
The AG also said the company’s financial were in shambles.

“Because of the significance of the matter described in the basis for the adverse opinion section of our report, the financial statements do not present fairly, in all material respects, the financial position of Zesa Holdigs Private Limited as at 31 December 2018, and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards,” she reported.

Zesa has attributed the challenges it faces to the sub-economic tariffs it charges resulting in production costs of electricity to remain higher than the sale costs.State media