ZESCO Board Chairperson Vickson Ncube says the utility company has put all mutual separation requests on hold due to limited cash flow resulting from the current load shedding.
The utility company says it is not receiving enough money from its customers, as people no longer buy electricity units as frequently as they did before the power rationing.
Zesco has issued a memorandum to its employees informing them that all mutual separation requests from both management and unionised employees had been put on hold until further notice.
“Management has in the recent past received an influx of requests to separate from the Corporation from employees in management and unionized categories as provided for in the Conditions of Service. This serves to inform you that the Corporation has with immediate effect put on hold all such separations until further notice. Kindly take this as official notification, particularly all those who have put in official requests,” read the memo dated September 16, 2024.
When asked to comment on this development in an interview, Wednesday, Ncube said the utility company couldn’t afford to pay separation packages due to its current low cash flow.
“…though that is not at board level, that is management level, but I can only imagine what is happening is. Since the commencement of power rationing, cash flows for Zesco are limited. We are not getting money. Even you, when you last bought your units, I am sure it is a while. What would take you a month, now takes you three months, so my own assessment is that it’s a cash flow issue. Those requests for separation are like a daily occurrence in Zesco, some people get jobs somewhere and they don’t want to lose their [separation package]. Some people are studying, they want to pay for their school fees while they are on an unpaid level, so they try to do all these things just to supplement their income. The reasons vary from person to person,” said Ncube.
“So because of the cash flow situation, I can only imagine it’s not possible to be able to pay separation packages at a time when your liquidator is constrained. That’s the most logical thing that I see myself. Once the situation normalises and obligations are met as and when they fall due, I don’t see that thing continuing. It’s a facility that exists in the condition of service but it’s only subject to availability of funds. This is a crunch time for Zesco so we can’t afford in my view to be paying money that is not life threatening to the country”.
